Vanguard Materials ETF (VAW) Valuation

NYSE Arca: VAWP/E, earnings yield and other ratios of the holdings combined.

VAW valuation today

Holdings combined · company data as of Oct 26, 2026
P/E (TTM)
34.4
trailing earnings
Forward P/E
15.6
analyst estimates
Price / sales
1.90
Price / book
3.10
EV / EBITDA
13.4
Earnings yield
2.91%
inverse of P/E
Dividend yield
1.69%
of the holdings
Return on equity
9.0%
combined
Net margin
5.5%
combined
Beta
0.94
weighted, vs S&P 500

VAW valuation vs other stock ETFs

P/E (TTM)Forward P/E
VAW valuation compared with other stock ETFs
ETFP/EFwd P/EP/SP/BDiv. yieldROENet marginLoss-makers
VAW34.415.61.903.101.69%9.0%5.5%12.4%
SPY25.919.93.675.471.08%21.1%14.2%1.9%
QQQ34.223.45.939.270.58%27.1%17.4%6.9%
DIA20.918.43.165.521.55%26.4%15.1%0.0%
VTI28.219.43.315.001.07%17.7%11.8%4.6%
IWMn/m13.91.252.031.38%−1.7%−1.0%28.1%

Same method for every fund. n/m = not meaningful (combined trailing earnings below zero or close to it). Loss-makers = weight of holdings with negative trailing earnings.

VAW valuation by sector

P/E (TTM)Forward P/E
VAW valuation by sector
SectorWeightP/EFwd P/EP/SP/BDiv. yieldROE
Basic Materials89.7%32.516.12.223.341.50%10.3%
Consumer Cyclical9.2%72.612.50.881.973.51%2.7%
Industrials0.6%36.48.90.681.581.31%4.3%
Healthcare0.5%22.519.82.013.021.54%13.4%
Energy0.0%24.823.62.978.530.00%34.4%
Consumer Defensive0.0%n/m13.70.120.400.00%−11.2%

VAW earnings yield vs bond yields

VAW earnings yield (forward)
6.39%
VAW earnings yield (trailing)
2.91%
VAW dividend yield
1.69%
Bond market yield (AGG)
5.33%
T-bill yield (BIL)
3.91%

Earnings yield = earnings ÷ price (1 ÷ P/E). The gap to bond yields is a rough gauge of the extra return stocks are priced to deliver.

How VAW weight splits by P/E

Share of the covered weight in companies with a trailing P/E in each range.

VAW largest holdings: valuation

VAW largest holdings valuation
SymbolCompanyWeightP/EFwd P/EP/SDiv. yieldShare of earnings
LINLinde plc15.80%32.223.66.51.28%17.86%
NEMNewmont Corporation8.45%15.011.64.80.88%20.53%
FCXFreeport-McMoRan Inc.6.96%34.318.13.90.86%7.39%
ECLEcolab Inc.5.07%38.829.74.81.01%4.75%
SHWThe Sherwin-Williams Company4.98%30.923.83.30.95%5.87%
APDAir Products and Chemicals, Inc.4.08%—19.95.32.42%−0.10%
CRHCRH PLC3.99%—————
CTVACorteva, Inc.3.76%8.019.11.75.59%17.20%
NUENucor Corporation3.68%20.411.41.60.87%6.54%
STLDSteel Dynamics, Inc.2.16%21.810.01.70.88%3.61%
VMCVulcan Materials Company2.15%30.422.44.10.81%2.57%
MLMMartin Marietta Materials, Inc.1.97%32.620.65.30.67%2.19%
PPGPPG Industries, Inc.1.61%15.412.41.52.76%3.80%
SWSmurfit WestRock plc1.55%43.313.80.74.40%1.30%
IFFInternational Flavors & Fragrances Inc.1.48%89.817.72.11.76%0.60%
DOWDow Inc.1.43%—14.10.54.68%−3.19%
RGLDRoyal Gold, Inc.1.40%26.424.213.10.80%1.92%
RSReliance Steel & Aluminum Co.1.37%23.916.41.31.22%2.08%
PKGPackaging Corporation of America1.35%30.718.72.22.54%1.60%
AMCRAmcor plc1.31%18.410.60.95.93%2.59%
CDECoeur Mining, Inc.1.26%13.28.75.00.26%3.46%
AMRZAmerize Inc.1.25%—————
IPInternational Paper Company1.20%—11.70.75.43%−6.61%
CFCF Industries Holdings, Inc.1.19%9.012.22.41.99%4.81%
LYBLyondellBasell Industries N.V.1.03%—9.10.74.31%−0.49%

Share of earnings = the holding's part of the fund's combined trailing profit. Green: earns more than its weight; orange: less. Symbol links go to each company's key metrics.

About VAW valuation

Adding up its 106 holdings with company data, VAW trades at 34.4 times trailing earnings and 15.6 times analysts' forward estimates, with a price-to-book ratio of 3.10 and a dividend yield of 1.69%. Its earnings yield of 2.91% is 2.42 percentage points below the 5.33% yield to maturity of the U.S. bond market (AGG).

The ten largest holdings are 58.9% of the fund and earn 86.2% of its combined profit. By sector, Consumer Cyclical is the most expensive at 72.6 times earnings and Healthcare the cheapest at 22.5. Companies that lost money over the past year are 12.4% of the covered weight.

How these figures are calculated. Each ratio treats the fund as one company: the earnings, sales and book value of every holding are added up in proportion to its weight and divided into the fund's price. In practice that is a weighted harmonic mean, so a single stock with a very high P/E cannot distort the result, and loss-making companies reduce the fund's earnings instead of being dropped. Covers 94.6% of the fund's weight (U.S.-listed stocks with company data); company figures as of October 26, 2026.

Related: VAW chart, VAW performance, VAW holdings, VAW dividends.

VAW valuation FAQ

What is the P/E ratio of VAW?

Based on its holdings, VAW has a trailing P/E of 34.4 and a forward P/E of 15.6 (earnings of all covered holdings combined in proportion to their weights, as of October 26, 2026).

What is the earnings yield of VAW?

The trailing earnings yield is 2.91% (1 ÷ P/E) and the forward earnings yield 6.39%. For comparison the U.S. bond market (AGG) yields 5.33% to maturity and T-bills about 3.91%.

Is VAW more expensive than the S&P 500?

VAW trades at 34.4 times trailing earnings versus 25.9 for the S&P 500 (SPY); on forward estimates the figures are 15.6 and 19.9.

What is the price-to-book ratio of VAW?

The holdings of VAW trade at 3.10 times book value, with a combined return on equity of 9.0%.

Which sector in VAW has the highest P/E?

Consumer Cyclical has the highest P/E at 72.6 and Healthcare the lowest at 22.5.