Vanguard Materials ETF/ Vanguard Energy ETF
Over the long haul, expenses matter. Paying too much in fees and hidden costs can wreak havoc on a portfolio and weaken overall returns. To that end, the Vanguard Materials ETF (VAW) helps put high fees to rest.
Leave it to the indexing wizards in Malvern to run a materials fund at just 0.14% in expenses. That’s nearly 84% less than its peers’ average.
For those low costs, investors are getting a pretty good portfolio of stocks. VAW tracks the MSCI US Investable Market Materials 25/50 and provides exposure to 134 different chemicals, construction materials, glass, paper, forest products, and metals producers. The only thing that’s missing is exposure to energy firms — which can be bought via the Vanguard Energy ETF (VDE).
Both funds have managed to rack up big performance numbers since their inceptions and could form a great low-cost backbone to a materials portfolio.