FLSW vs. VGK

Last updated Jun 4, 2026

FLSW (Franklin FTSE Switzerland ETF) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - FLSW tracks the FTSE Switzerland RIC Capped Index while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 5 years, FLSW returned 6.80%/yr vs 8.24%/yr for VGK. Their correlation of 0.81 suggests significant overlap in exposure. FLSW charges 0.09%/yr vs 0.06%/yr for VGK.

Performance

FLSW vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Switzerland ETF (FLSW) 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, FLSW achieves a 1.77% return, which is significantly lower than VGK's 5.62% return.

FLSW

• 1D: -1.60%
• 1M: 1.15%
• YTD: 1.77%
• 6M: 5.12%
• 1Y: 13.32%
• 3Y*: 11.58%
• 5Y*: 6.80%
• 10Y*: —

VGK

• 1D: -1.19%
• 1M: 2.79%
• YTD: 5.62%
• 6M: 8.66%
• 1Y: 18.01%
• 3Y*: 16.32%
• 5Y*: 8.24%
• 10Y*: 9.26%

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

FLSW vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLSW Franklin FTSE Switzerland ETF	1.77%	32.92%	-1.77%	16.79%	-18.14%	20.82%	13.25%	31.66%	-7.85%
VGK Vanguard FTSE Europe ETF	5.62%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-12.63%

Correlation

The correlation between FLSW and VGK is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Feb 9, 2018	0.81

The correlation between FLSW and VGK has been stable across timeframes, ranging from 0.81 to 0.87 - a consistent structural relationship.

FLSW vs. VGK - Sectors Allocation Comparison

Sectors	FLSW	VGK
Healthcare	37.4%	12.1%
Financial Services	18.0%	23.9%
Consumer Defensive	14.0%	8.5%
Industrials	13.8%	19.5%
Basic Materials	7.7%	5.4%
Consumer Cyclical	5.2%	6.8%
Real Estate	1.3%	1.5%
Communication Services	1.2%	3.3%
Technology	1.1%	8.3%
Utilities	0.2%	4.8%
Energy	-	5.3%

Return for Risk

FLSW vs. VGK — Risk / Return Rank

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

FLSW

FLSW Risk / Return Rank: 24
FLSW Sharpe Ratio Rank: 24
FLSW Sortino Ratio Rank: 24
FLSW Omega Ratio Rank: 23
FLSW Calmar Ratio Rank: 22
FLSW Martin Ratio Rank: 25

VGK

VGK Risk / Return Rank: 31
VGK Sharpe Ratio Rank: 31
VGK Sortino Ratio Rank: 31
VGK Omega Ratio Rank: 30
VGK Calmar Ratio Rank: 30
VGK Martin Ratio Rank: 35

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.

FLSW vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Switzerland ETF (FLSW) 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.

	FLSW	VGK	Difference
Sharpe ratio: Return per unit of total volatility	0.86	1.18	-0.32
Sortino ratio: Return per unit of downside risk	1.32	1.72	-0.40
Omega ratio: Gain probability vs. loss probability	1.15	1.21	-0.06
Calmar ratio: Return relative to maximum drawdown	1.00	1.50	-0.50
Martin ratio: Return relative to average drawdown	3.24	5.56	-2.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLSW vs. VGK - Sharpe Ratio Comparison

The current FLSW Sharpe Ratio is 0.86, which is comparable to the VGK Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of FLSW 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

	FLSW	VGK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.86	1.18	-0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.46	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.28	+0.28

Drawdowns

FLSW vs. VGK - Drawdown Comparison

The maximum FLSW drawdown since its inception was -28.16%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for FLSW and VGK.

Drawdown Indicators

	FLSW	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-28.16%	-63.61%	+35.45%
Max Drawdown (1Y) Largest decline over 1 year	-13.38%	-12.09%	-1.29%
Max Drawdown (3Y) Largest decline over 3 years	-13.38%	-14.31%	+0.93%
Max Drawdown (5Y) Largest decline over 5 years	-28.16%	-32.74%	+4.58%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.24%	—
Current Drawdown Current decline from peak	-6.34%	-2.41%	-3.93%
Average Drawdown Average peak-to-trough decline	-5.96%	-13.34%	+7.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.11%	3.25%	+0.86%

Volatility

FLSW vs. VGK - Volatility Comparison

The current volatility for Franklin FTSE Switzerland ETF (FLSW) is 5.13%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 5.73%. This indicates that FLSW experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLSW	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.13%	5.73%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	12.16%	12.78%	-0.62%
Volatility (1Y) Calculated over the trailing 1-year period	15.55%	15.40%	+0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.71%	17.90%	-2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.89%	18.96%	-2.07%

FLSW vs. VGK - Expense Ratio Comparison

FLSW has a 0.09% expense ratio, which is higher than VGK's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FLSW vs. VGK - Dividend Comparison

FLSW's dividend yield for the trailing twelve months is around 2.08%, less than VGK's 2.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLSW Franklin FTSE Switzerland ETF	2.08%	2.12%	2.04%	2.36%	2.02%	1.86%	2.28%	1.15%	2.86%	0.00%	0.00%	0.00%
VGK Vanguard FTSE Europe ETF	2.82%	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 FLSW and VGK in my portfolio?

FLSW and VGK have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLSW or VGK?

VGK has higher volatility (5.73%) compared to FLSW (5.13%). In terms of maximum drawdown, FLSW dropped -28.16% vs VGK's -63.61%.

Which ETF is better, FLSW or VGK?

On 5-year performance, VGK leads with 8.24% vs 6.80% for FLSW. On fees, VGK is cheaper at 0.06% per year. On volatility, FLSW has been the lower-risk option at 5.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLSW or VGK?

Over the 5-year period, VGK has performed better with a 8.24% return vs 6.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLSW or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.09% for FLSW.

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

VGK has the higher dividend yield at 2.82%, compared with 2.08% for FLSW.

What is the main difference between FLSW and VGK?

FLSW tracks FTSE Switzerland RIC Capped Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.09% for FLSW and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.18 vs 0.86), 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.