EWU vs. VGK

Last updated Jun 5, 2026

EWU (iShares MSCI United Kingdom ETF) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - EWU tracks the MSCI United Kingdom Index while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, EWU returned 7.86%/yr vs 9.35%/yr for VGK. Their correlation of 0.91 suggests significant overlap in exposure. EWU charges 0.50%/yr vs 0.06%/yr for VGK.

Performance

EWU vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI United Kingdom ETF (EWU) and Vanguard FTSE Europe ETF (VGK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with EWU having a 6.59% return and VGK slightly higher at 6.81%. Over the past 10 years, EWU has underperformed VGK with an annualized return of 7.86%, while VGK has yielded a comparatively higher 9.35% annualized return.

EWU

• 1D: 0.99%
• 1M: 0.93%
• YTD: 6.59%
• 6M: 10.05%
• 1Y: 21.33%
• 3Y*: 17.73%
• 5Y*: 10.86%
• 10Y*: 7.86%

VGK

• 1D: 1.13%
• 1M: 2.33%
• YTD: 6.81%
• 6M: 9.95%
• 1Y: 18.56%
• 3Y*: 17.03%
• 5Y*: 8.48%
• 10Y*: 9.35%

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

EWU vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWU iShares MSCI United Kingdom ETF	6.59%	34.95%	6.74%	12.40%	-4.39%	18.19%	-11.80%	21.29%	-14.30%	21.54%
VGK Vanguard FTSE Europe ETF	6.81%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between EWU and VGK is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.91

The correlation between EWU and VGK has been stable across timeframes, ranging from 0.88 to 0.91 - a consistent structural relationship.

EWU vs. VGK - Sectors Allocation Comparison

Sectors	EWU	VGK
Financial Services	26.0%	23.9%
Consumer Defensive	14.2%	8.5%
Healthcare	13.9%	12.1%
Industrials	12.1%	19.5%
Energy	11.0%	5.3%
Basic Materials	9.3%	5.4%
Utilities	5.1%	4.8%
Consumer Cyclical	4.0%	6.8%
Communication Services	2.4%	3.3%
Technology	0.6%	8.3%
Real Estate	0.6%	1.5%

Return for Risk

EWU vs. VGK — Risk / Return Rank

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

EWU

EWU Risk / Return Rank: 44
EWU Sharpe Ratio Rank: 43
EWU Sortino Ratio Rank: 43
EWU Omega Ratio Rank: 41
EWU Calmar Ratio Rank: 44
EWU Martin Ratio Rank: 48

VGK

VGK Risk / Return Rank: 34
VGK Sharpe Ratio Rank: 34
VGK Sortino Ratio Rank: 35
VGK Omega Ratio Rank: 33
VGK Calmar Ratio Rank: 32
VGK Martin Ratio Rank: 38

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.

EWU vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI United Kingdom ETF (EWU) 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.

	EWU	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.21	+0.28
Sortino ratio: Return per unit of downside risk	2.12	1.77	+0.35
Omega ratio: Gain probability vs. loss probability	1.26	1.22	+0.05
Calmar ratio: Return relative to maximum drawdown	2.16	1.54	+0.62
Martin ratio: Return relative to average drawdown	7.80	5.73	+2.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWU vs. VGK - Sharpe Ratio Comparison

The current EWU Sharpe Ratio is 1.49, which is comparable to the VGK Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of EWU 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.

Sharpe Ratios by Period

	EWU	VGK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	1.21	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.66	0.48	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	0.49	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.28	-0.01

Drawdowns

EWU vs. VGK - Drawdown Comparison

The maximum EWU drawdown since its inception was -63.99%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for EWU and VGK.

Drawdown Indicators

	EWU	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-63.99%	-63.61%	-0.38%
Max Drawdown (1Y) Largest decline over 1 year	-9.92%	-12.09%	+2.17%
Max Drawdown (3Y) Largest decline over 3 years	-12.63%	-14.31%	+1.68%
Max Drawdown (5Y) Largest decline over 5 years	-24.91%	-32.74%	+7.83%
Max Drawdown (10Y) Largest decline over 10 years	-43.33%	-37.24%	-6.09%
Current Drawdown Current decline from peak	-3.70%	-1.31%	-2.39%
Average Drawdown Average peak-to-trough decline	-14.16%	-13.34%	-0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.74%	3.25%	-0.51%

Volatility

EWU vs. VGK - Volatility Comparison

iShares MSCI United Kingdom ETF (EWU) and Vanguard FTSE Europe ETF (VGK) have volatilities of 5.64% and 5.63%, 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

	EWU	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	5.63%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	12.33%	12.81%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	14.40%	15.41%	-1.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.43%	17.90%	-1.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	18.96%	-0.12%

EWU vs. VGK - Expense Ratio Comparison

EWU has a 0.50% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

EWU vs. VGK - Dividend Comparison

EWU's dividend yield for the trailing twelve months is around 3.50%, more than VGK's 2.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWU iShares MSCI United Kingdom ETF	3.50%	3.73%	4.16%	4.14%	3.43%	4.35%	2.48%	4.13%	4.98%	3.91%	3.97%	4.11%
VGK Vanguard FTSE Europe ETF	2.79%	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 EWU and VGK in my portfolio?

EWU and VGK have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWU or VGK?

EWU has higher volatility (5.64%) compared to VGK (5.63%). In terms of maximum drawdown, EWU dropped -63.99% vs VGK's -63.61%.

Which ETF is better, EWU or VGK?

On 10-year performance, VGK leads with 9.35% vs 7.86% for EWU. On fees, VGK is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWU or VGK?

Over the 10-year period, VGK has performed better with a 9.35% return vs 7.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWU or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.50% for EWU.

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

EWU has the higher dividend yield at 3.50%, compared with 2.79% for VGK.

What is the main difference between EWU and VGK?

EWU tracks MSCI United Kingdom Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.50% for EWU and 0.06% for VGK.

Which has better risk-adjusted returns?

EWU currently has the higher Sharpe Ratio (1.49 vs 1.21), 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.