EZU vs. VGK

Last updated Jun 3, 2026

EZU (iShares MSCI Eurozone ETF) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - EZU tracks the MSCI EMU while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, EZU returned 9.96%/yr vs 9.39%/yr for VGK. With a 0.96 correlation, they move nearly in lockstep. EZU charges 0.51%/yr vs 0.06%/yr for VGK.

Performance

EZU vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Eurozone ETF (EZU) 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, EZU achieves a 8.17% return, which is significantly higher than VGK's 6.90% return. Over the past 10 years, EZU has outperformed VGK with an annualized return of 9.96%, while VGK has yielded a comparatively lower 9.39% annualized return.

EZU

• 1D: 0.73%
• 1M: 3.97%
• YTD: 8.17%
• 6M: 11.21%
• 1Y: 19.95%
• 3Y*: 18.60%
• 5Y*: 9.36%
• 10Y*: 9.96%

VGK

• 1D: 0.50%
• 1M: 2.08%
• YTD: 6.90%
• 6M: 10.71%
• 1Y: 18.42%
• 3Y*: 16.79%
• 5Y*: 8.68%
• 10Y*: 9.39%

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

EZU vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EZU iShares MSCI Eurozone ETF	8.17%	40.00%	2.23%	23.44%	-17.25%	13.92%	7.62%	23.27%	-16.76%	27.89%
VGK Vanguard FTSE Europe ETF	6.90%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between EZU and VGK is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.96

The correlation between EZU and VGK has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

EZU vs. VGK - Sectors Allocation Comparison

Sectors	EZU	VGK
Financial Services	24.2%	23.9%
Industrials	21.3%	19.5%
Technology	14.6%	8.3%
Consumer Cyclical	8.3%	6.8%
Utilities	6.8%	4.8%
Healthcare	5.8%	12.1%
Consumer Defensive	5.6%	8.5%
Energy	4.2%	5.3%
Basic Materials	4.1%	5.4%
Communication Services	4.1%	3.3%
Real Estate	1.0%	1.5%

Return for Risk

EZU vs. VGK — Risk / Return Rank

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

EZU

EZU Risk / Return Rank: 33
EZU Sharpe Ratio Rank: 33
EZU Sortino Ratio Rank: 32
EZU Omega Ratio Rank: 32
EZU Calmar Ratio Rank: 33
EZU Martin Ratio Rank: 37

VGK

VGK Risk / Return Rank: 34
VGK Sharpe Ratio Rank: 33
VGK Sortino Ratio Rank: 33
VGK Omega Ratio Rank: 32
VGK Calmar Ratio Rank: 33
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.

EZU vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Eurozone ETF (EZU) 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.

	EZU	VGK	Difference
Sharpe ratio Return per unit of total volatility	1.19	1.21	-0.02
Sortino ratio Return per unit of downside risk	1.75	1.76	-0.01
Omega ratio Gain probability vs. loss probability	1.22	1.22	0.00
Calmar ratio Return relative to maximum drawdown	1.62	1.62	0.00
Martin ratio Return relative to average drawdown	5.88	6.04	-0.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EZU vs. VGK - Sharpe Ratio Comparison

The current EZU Sharpe Ratio is 1.19, which is comparable to the VGK Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of EZU 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

	EZU	VGK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	1.21	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.49	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.50	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.28	-0.07

Drawdowns

EZU vs. VGK - Drawdown Comparison

The maximum EZU drawdown since its inception was -65.32%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for EZU and VGK.

Drawdown Indicators

	EZU	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-65.32%	-63.61%	-1.71%
Max Drawdown (1Y) Largest decline over 1 year	-13.06%	-12.09%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-15.02%	-14.31%	-0.71%
Max Drawdown (5Y) Largest decline over 5 years	-36.11%	-32.74%	-3.37%
Max Drawdown (10Y) Largest decline over 10 years	-41.37%	-37.24%	-4.13%
Current Drawdown Current decline from peak	0.00%	-1.23%	+1.23%
Average Drawdown Average peak-to-trough decline	-19.24%	-13.35%	-5.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	3.24%	+0.36%

Volatility

EZU vs. VGK - Volatility Comparison

iShares MSCI Eurozone ETF (EZU) has a higher volatility of 6.82% compared to Vanguard FTSE Europe ETF (VGK) at 5.94%. This indicates that EZU's price experiences larger fluctuations and is considered to be riskier than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EZU	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.82%	5.94%	+0.88%
Volatility (6M) Calculated over the trailing 6-month period	14.07%	12.73%	+1.34%
Volatility (1Y) Calculated over the trailing 1-year period	16.89%	15.38%	+1.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.85%	17.89%	+1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.49%	18.96%	+1.53%

EZU vs. VGK - Expense Ratio Comparison

EZU has a 0.51% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

EZU vs. VGK - Dividend Comparison

EZU's dividend yield for the trailing twelve months is around 2.64%, less than VGK's 2.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EZU iShares MSCI Eurozone ETF	2.64%	2.85%	2.90%	2.56%	2.79%	2.46%	2.13%	2.84%	3.47%	1.91%	3.07%	2.18%
VGK Vanguard FTSE Europe ETF	2.78%	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 EZU and VGK in my portfolio?

With a correlation of 0.97, EZU 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, EZU or VGK?

EZU has higher volatility (6.82%) compared to VGK (5.94%). In terms of maximum drawdown, EZU dropped -65.32% vs VGK's -63.61%.

Which ETF is better, EZU or VGK?

On 10-year performance, EZU leads with 9.96% vs 9.39% for VGK. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 5.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EZU or VGK?

Over the 10-year period, EZU has performed better with a 9.96% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EZU or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.51% for EZU.

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

VGK has the higher dividend yield at 2.78%, compared with 2.64% for EZU.

What is the main difference between EZU and VGK?

EZU tracks MSCI EMU, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.51% for EZU and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.21 vs 1.19), 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.