Morningstar Rating

ETF Research and Analysis

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

Bull Case

This is one of the cheapest and most comprehensive U.S. materials-sector funds available.
Some of the fund's larger holdings in the chemicals industry have shifted their focus up the value chain toward less-cyclical, higher-margin specialty chemicals.
The fund's holdings should outperform during periods of strong economic growth. Read more 

Bear Case

The fund's holdings operate in highly cyclical industries and must contend with volatile input prices.
Infrastructure investment in China may continue to slow over the long term, which could create a headwind for the fund's holdings.
The fund excludes many of the large players in the metals and mining industry.  Read more 

This Strategic Beta ETF Ticks a Lot of Boxes 
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