Morningstar Rating

ETF Research and Analysis

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

Bull Case

This is the cheapest and most comprehensive U.S. materials-sector fund available to individual investors.
Some of the fund's larger holdings in the chemicals industry are shifting their focus up the value chain toward less-cyclical, higher-margin specialty chemicals.
Low natural gas prices may continue to help the fund's North American chemical producers.  Read more 

Bear Case

The fund's holdings operate in highly cyclical industries where it is difficult to establish sustainable competitive advantages, and they must contend with volatile input prices.
Infrastructure investment in China may slow over the long term, creating a headwind for the fund's holdings.
New capacity could squeeze margins in the chemicals industry.  Read more 

Foreign-Stock Exposure Without the Currency Risk 
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