DFE vs. VGK

Last updated Jun 24, 2026

DFE (WisdomTree Europe SmallCap Dividend Fund) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - DFE tracks the WisdomTree Europe SmallCap Dividend Index while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, DFE returned 7.89%/yr vs 10.38%/yr for VGK. Their correlation of 0.86 suggests significant overlap in exposure. DFE charges 0.58%/yr vs 0.06%/yr for VGK.

Performance

DFE vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Europe SmallCap Dividend Fund (DFE) and Vanguard FTSE Europe ETF (VGK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFE achieves a 2.33% return, which is significantly lower than VGK's 6.16% return. Over the past 10 years, DFE has underperformed VGK with an annualized return of 7.89%, while VGK has yielded a comparatively higher 10.38% annualized return.

DFE

• 1D: -1.30%
• 1M: -3.73%
• YTD: 2.33%
• 6M: 3.37%
• 1Y: 10.63%
• 3Y*: 14.30%
• 5Y*: 4.37%
• 10Y*: 7.89%

VGK

• 1D: -1.24%
• 1M: -0.13%
• YTD: 6.16%
• 6M: 6.16%
• 1Y: 19.10%
• 3Y*: 16.76%
• 5Y*: 8.57%
• 10Y*: 10.38%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFE vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFE WisdomTree Europe SmallCap Dividend Fund	2.33%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%
VGK Vanguard FTSE Europe ETF	6.16%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between DFE and VGK is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 16, 2006	0.86

The correlation between DFE and VGK has been stable across timeframes, ranging from 0.86 to 0.92 - a consistent structural relationship.

DFE vs. VGK - Sectors Allocation Comparison

Sectors	DFE	VGK
Industrials	31.1%	19.3%
Consumer Cyclical	12.4%	6.8%
Financial Services	10.8%	23.6%
Basic Materials	8.3%	5.3%
Real Estate	7.0%	1.5%
Technology	6.8%	8.2%
Communication Services	5.8%	3.3%
Healthcare	5.6%	11.9%
Energy	4.6%	5.3%
Consumer Defensive	4.2%	8.4%
Utilities	3.4%	4.7%

Return for Risk

DFE vs. VGK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFE

DFE Risk / Return Rank: 22
DFE Sharpe Ratio Rank: 21
DFE Sortino Ratio Rank: 21
DFE Omega Ratio Rank: 20
DFE Calmar Ratio Rank: 21
DFE Martin Ratio Rank: 25

VGK

VGK Risk / Return Rank: 35
VGK Sharpe Ratio Rank: 35
VGK Sortino Ratio Rank: 35
VGK Omega Ratio Rank: 34
VGK Calmar Ratio Rank: 33
VGK Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFE vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe SmallCap Dividend Fund (DFE) and Vanguard FTSE Europe ETF (VGK). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	DFE	VGK	Difference
Sharpe ratio: Return per unit of total volatility	0.71	1.21	-0.50
Sortino ratio: Return per unit of downside risk	1.10	1.79	-0.69
Omega ratio: Gain probability vs. loss probability	1.13	1.22	-0.08
Calmar ratio: Return relative to maximum drawdown	0.94	1.59	-0.65
Martin ratio: Return relative to average drawdown	3.14	5.89	-2.75

DFE vs. VGK - Sharpe Ratio Comparison

The current DFE Sharpe Ratio is 0.71, which is lower than the VGK Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of DFE and VGK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DFE vs. VGK - Drawdown Comparison

The maximum DFE drawdown since its inception was -69.38%, which is greater than VGK's maximum drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for DFE and VGK.

Drawdown Indicators

	DFE	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-63.61%	-5.77%
Max Drawdown (1Y) Largest decline over 1 year	-11.41%	-12.09%	+0.68%
Max Drawdown (3Y) Largest decline over 3 years	-16.41%	-14.31%	-2.10%
Max Drawdown (5Y) Largest decline over 5 years	-40.34%	-32.74%	-7.60%
Max Drawdown (10Y) Largest decline over 10 years	-49.66%	-37.24%	-12.42%
Current Drawdown Current decline from peak	-5.74%	-1.91%	-3.83%
Average Drawdown Average peak-to-trough decline	-17.69%	-13.31%	-4.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	3.25%	+0.15%

Volatility

DFE vs. VGK - Volatility Comparison

WisdomTree Europe SmallCap Dividend Fund (DFE) and Vanguard FTSE Europe ETF (VGK) have volatilities of 4.86% and 4.96%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFE	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	4.96%	-0.10%
Volatility (6M) Calculated over the trailing 6-month period	12.62%	13.38%	-0.76%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	15.81%	-0.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.07%	17.96%	+1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.37%	18.56%	+0.81%

DFE vs. VGK - Expense Ratio Comparison

DFE has a 0.58% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

DFE vs. VGK - Dividend Comparison

DFE's dividend yield for the trailing twelve months is around 4.00%, more than VGK's 2.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	4.00%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
VGK Vanguard FTSE Europe ETF	2.95%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%

Frequently Asked Questions

Can I hold both DFE and VGK in my portfolio?

With a correlation of 0.90, DFE and VGK move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFE or VGK?

VGK has higher volatility (4.96%) compared to DFE (4.86%). In terms of maximum drawdown, DFE dropped -69.38% vs VGK's -63.61%.

Which ETF is better, DFE or VGK?

On 10-year performance, VGK leads with 10.38% vs 7.89% for DFE. On fees, VGK is cheaper at 0.06% per year. On volatility, DFE has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFE or VGK?

Over the 10-year period, VGK has performed better with a 10.38% return vs 7.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFE or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.58% for DFE.

Which ETF pays a higher dividend yield, DFE or VGK?

DFE has the higher dividend yield at 4.00%, compared with 2.95% for VGK.

What is the main difference between DFE and VGK?

DFE tracks WisdomTree Europe SmallCap Dividend Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for DFE and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.21 vs 0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.