Vanguard Materials ETFVAW

Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Vanguard Materials ETF VAW is currently the cheapest and most comprehensive U.S. materials sector ETF available. It owns nearly every publicly traded materials company based in the United States. This includes companies   Read more 

Bull Case

VAW is the cheapest and most comprehensive U.S. materials sector ETF available.
The fund's holdings in the chemicals industry are shifting their focus up the value chain toward less-cyclical, higher-margin specialty chemicals.
Low natural gas prices are helping the fund’s North American chemical producers.  Read more 

Bear Case

Many of the fund's small- and mid-cap holdings lack the competitive advantages their large-cap counterparts enjoy.
Slowing infrastructure investment in China and weakness in Europe may continue to weigh on the fund's holdings.
New low-cost chemical production facilities in China and the Middle East may lead to overcapacity and squeeze industry margins.  Read more 

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