HEZU vs. VGK

Last updated Jun 26, 2026

HEZU (iShares Currency Hedged MSCI Eurozone ETF) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - HEZU tracks the MSCI EMU 100% USD Hedged Index while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, HEZU returned 13.39%/yr vs 10.76%/yr for VGK. Their correlation of 0.85 suggests significant overlap in exposure. HEZU charges 0.52%/yr vs 0.06%/yr for VGK.

Performance

HEZU vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Eurozone ETF (HEZU) 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, HEZU achieves a 13.40% return, which is significantly higher than VGK's 6.98% return. Over the past 10 years, HEZU has outperformed VGK with an annualized return of 13.39%, while VGK has yielded a comparatively lower 10.76% annualized return.

HEZU

• 1D: 1.06%
• 1M: 3.04%
• YTD: 13.40%
• 6M: 13.42%
• 1Y: 26.69%
• 3Y*: 19.44%
• 5Y*: 12.98%
• 10Y*: 13.39%

VGK

• 1D: 1.01%
• 1M: -0.51%
• YTD: 6.98%
• 6M: 6.82%
• 1Y: 19.17%
• 3Y*: 17.01%
• 5Y*: 8.69%
• 10Y*: 10.76%

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

HEZU vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEZU iShares Currency Hedged MSCI Eurozone ETF	13.40%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%
VGK Vanguard FTSE Europe ETF	6.98%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between HEZU 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	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014	0.85

The correlation between HEZU and VGK has been stable across timeframes, ranging from 0.85 to 0.89 - a consistent structural relationship.

HEZU vs. VGK - Sectors Allocation Comparison

Sectors	HEZU	VGK
Financial Services	23.8%	23.6%
Industrials	21.0%	19.3%
Technology	16.1%	8.2%
Consumer Cyclical	8.4%	6.8%
Utilities	6.4%	4.7%
Healthcare	5.6%	11.9%
Consumer Defensive	5.5%	8.4%
Communication Services	4.3%	3.3%
Basic Materials	4.1%	5.3%
Energy	3.9%	5.3%
Real Estate	0.9%	1.5%

Return for Risk

HEZU vs. VGK — Risk / Return Rank

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

HEZU

HEZU Risk / Return Rank: 60
HEZU Sharpe Ratio Rank: 59
HEZU Sortino Ratio Rank: 61
HEZU Omega Ratio Rank: 59
HEZU Calmar Ratio Rank: 57
HEZU Martin Ratio Rank: 61

VGK

VGK Risk / Return Rank: 38
VGK Sharpe Ratio Rank: 39
VGK Sortino Ratio Rank: 38
VGK Omega Ratio Rank: 36
VGK Calmar Ratio Rank: 36
VGK Martin Ratio Rank: 42

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.

HEZU vs. VGK - Risk-Adjusted Trends Comparison

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

	HEZU	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.22	+0.51
Sortino ratio: Return per unit of downside risk	2.49	1.80	+0.69
Omega ratio: Gain probability vs. loss probability	1.32	1.22	+0.10
Calmar ratio: Return relative to maximum drawdown	2.45	1.59	+0.85
Martin ratio: Return relative to average drawdown	9.61	5.91	+3.70

HEZU vs. VGK - Sharpe Ratio Comparison

The current HEZU Sharpe Ratio is 1.73, which is higher than the VGK Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of HEZU 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

HEZU vs. VGK - Drawdown Comparison

The maximum HEZU drawdown since its inception was -38.80%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for HEZU and VGK.

Drawdown Indicators

	HEZU	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-63.61%	+24.81%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-12.09%	+1.14%
Max Drawdown (3Y) Largest decline over 3 years	-14.83%	-14.31%	-0.52%
Max Drawdown (5Y) Largest decline over 5 years	-22.79%	-32.74%	+9.95%
Max Drawdown (10Y) Largest decline over 10 years	-38.80%	-37.24%	-1.56%
Current Drawdown Current decline from peak	-1.13%	-1.16%	+0.03%
Average Drawdown Average peak-to-trough decline	-5.81%	-13.31%	+7.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	3.25%	-0.47%

Volatility

HEZU vs. VGK - Volatility Comparison

iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a higher volatility of 5.41% compared to Vanguard FTSE Europe ETF (VGK) at 4.92%. This indicates that HEZU'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

	HEZU	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	4.92%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	13.26%	13.40%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	15.55%	15.77%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.60%	17.96%	-1.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.17%	18.56%	-0.39%

HEZU vs. VGK - Expense Ratio Comparison

HEZU has a 0.52% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

HEZU vs. VGK - Dividend Comparison

HEZU's dividend yield for the trailing twelve months is around 2.58%, less than VGK's 2.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.58%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%
VGK Vanguard FTSE Europe ETF	2.92%	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 HEZU and VGK in my portfolio?

HEZU 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, HEZU or VGK?

HEZU has higher volatility (5.41%) compared to VGK (4.92%). In terms of maximum drawdown, HEZU dropped -38.80% vs VGK's -63.61%.

Which ETF is better, HEZU or VGK?

On 10-year performance, HEZU leads with 13.39% vs 10.76% for VGK. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 4.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEZU or VGK?

Over the 10-year period, HEZU has performed better with a 13.39% return vs 10.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEZU or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.52% for HEZU.

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

VGK has the higher dividend yield at 2.92%, compared with 2.58% for HEZU.

What is the main difference between HEZU and VGK?

HEZU tracks MSCI EMU 100% USD Hedged Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.52% for HEZU and 0.06% for VGK.

Which has better risk-adjusted returns?

HEZU currently has the higher Sharpe Ratio (1.73 vs 1.22), 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.