Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Materials ETF
With that in mind, let's take a closer look at Vanguard Materials and see what CAPS investors are saying about the ETF right now.
Vanguard Materials facts
|Total Assets||$542 million|
|Investment Approach||Seeks to replicate the MSCI US Investable Market Materials 25/50 Index, which consists of all capitalization of stocks within the materials sector.|
|1-Year / 3-Year / 5-Year Annual Returns||(9.2%) / 18.7% / 2.3%|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||
iShares Dow Jones U.S. Basic Materials
SPDR S&P International Materials Sector
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 96% of the 92 members who have rated Vanguard Materials believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star XMFScottD, who is ranked in the top 5% of our community, and johnw106.
Having gotten on board a couple of years ago, XMFScottD succinctly summed up the opportunity: "[Vanguard Materials] is a commodity play with Vanguard's typical low fees."
In fact, Vanguard Materials sports a cheapish expense ratio of 0.24%. That's lower than that of other material ETFs peers like iShares Dow Jones U.S. Basic Materials (0.47%) and SPDR S&P International Materials Sector (0.50%).
CAPS member johnw2106 expands on the opportunity:
This one is a way to own metals and fertilizers along with chemicals. As with my other ETF's I can own twenty or more of the top companies in this sector without having to buy twenty different stocks and paying a small fortune in commissions and fees. As the World economy recovers and begins to grow again look for a nice profit with this one.
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