IEUS vs. VGK

Last updated Jun 24, 2026

IEUS (iShares MSCI Europe Small-Cap ETF) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - IEUS tracks the MSCI Europe Small Cap Index while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, IEUS returned 8.42%/yr vs 10.38%/yr for VGK. Their correlation of 0.85 suggests significant overlap in exposure. IEUS charges 0.40%/yr vs 0.06%/yr for VGK.

Performance

IEUS vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Europe Small-Cap ETF (IEUS) 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, IEUS achieves a 2.96% return, which is significantly lower than VGK's 6.16% return. Over the past 10 years, IEUS has underperformed VGK with an annualized return of 8.42%, while VGK has yielded a comparatively higher 10.38% annualized return.

IEUS

• 1D: -1.36%
• 1M: -3.42%
• YTD: 2.96%
• 6M: 3.35%
• 1Y: 10.51%
• 3Y*: 13.92%
• 5Y*: 2.93%
• 10Y*: 8.42%

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)

IEUS vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEUS iShares MSCI Europe Small-Cap ETF	2.96%	32.06%	-1.59%	17.34%	-27.07%	15.06%	12.99%	29.72%	-20.17%	35.04%
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 IEUS and VGK is 0.92, 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	0.92
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 Nov 19, 2007	0.85

The correlation between IEUS and VGK has been stable across timeframes, ranging from 0.85 to 0.92 - a consistent structural relationship.

IEUS vs. VGK - Sectors Allocation Comparison

Sectors	IEUS	VGK
Industrials	26.6%	19.3%
Financial Services	15.0%	23.6%
Consumer Cyclical	12.1%	6.8%
Real Estate	8.3%	1.5%
Technology	7.9%	8.2%
Healthcare	7.5%	11.9%
Basic Materials	7.4%	5.3%
Energy	4.8%	5.3%
Communication Services	4.5%	3.3%
Consumer Defensive	3.6%	8.4%
Utilities	2.3%	4.7%

Return for Risk

IEUS vs. VGK — Risk / Return Rank

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

IEUS

IEUS Risk / Return Rank: 20
IEUS Sharpe Ratio Rank: 20
IEUS Sortino Ratio Rank: 19
IEUS Omega Ratio Rank: 19
IEUS Calmar Ratio Rank: 19
IEUS Martin Ratio Rank: 23

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.

IEUS vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe Small-Cap ETF (IEUS) 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.

	IEUS	VGK	Difference
Sharpe ratio: Return per unit of total volatility	0.65	1.21	-0.56
Sortino ratio: Return per unit of downside risk	1.03	1.79	-0.76
Omega ratio: Gain probability vs. loss probability	1.12	1.22	-0.09
Calmar ratio: Return relative to maximum drawdown	0.82	1.59	-0.76
Martin ratio: Return relative to average drawdown	2.79	5.89	-3.10

IEUS vs. VGK - Sharpe Ratio Comparison

The current IEUS Sharpe Ratio is 0.65, which is lower than the VGK Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of IEUS 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

IEUS vs. VGK - Drawdown Comparison

The maximum IEUS drawdown since its inception was -63.09%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for IEUS and VGK.

Drawdown Indicators

	IEUS	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-63.09%	-63.61%	+0.52%
Max Drawdown (1Y) Largest decline over 1 year	-12.81%	-12.09%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-18.05%	-14.31%	-3.74%
Max Drawdown (5Y) Largest decline over 5 years	-44.86%	-32.74%	-12.12%
Max Drawdown (10Y) Largest decline over 10 years	-44.86%	-37.24%	-7.62%
Current Drawdown Current decline from peak	-4.49%	-1.91%	-2.58%
Average Drawdown Average peak-to-trough decline	-15.50%	-13.31%	-2.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.78%	3.25%	+0.53%

Volatility

IEUS vs. VGK - Volatility Comparison

iShares MSCI Europe Small-Cap ETF (IEUS) and Vanguard FTSE Europe ETF (VGK) have volatilities of 4.97% 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

	IEUS	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.97%	4.96%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	13.68%	13.38%	+0.30%
Volatility (1Y) Calculated over the trailing 1-year period	16.26%	15.81%	+0.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.84%	17.96%	+2.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.10%	18.56%	+1.54%

IEUS vs. VGK - Expense Ratio Comparison

IEUS has a 0.40% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

IEUS vs. VGK - Dividend Comparison

IEUS's dividend yield for the trailing twelve months is around 3.26%, more than VGK's 2.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEUS iShares MSCI Europe Small-Cap ETF	3.26%	3.19%	3.25%	2.97%	3.00%	2.63%	1.21%	4.03%	3.21%	2.13%	2.48%	2.06%
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 IEUS and VGK in my portfolio?

With a correlation of 0.92, IEUS 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, IEUS or VGK?

IEUS has higher volatility (4.97%) compared to VGK (4.96%). In terms of maximum drawdown, IEUS dropped -63.09% vs VGK's -63.61%.

Which ETF is better, IEUS or VGK?

On 10-year performance, VGK leads with 10.38% vs 8.42% for IEUS. 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, IEUS or VGK?

Over the 10-year period, VGK has performed better with a 10.38% return vs 8.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEUS or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.40% for IEUS.

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

IEUS has the higher dividend yield at 3.26%, compared with 2.95% for VGK.

What is the main difference between IEUS and VGK?

IEUS tracks MSCI Europe Small Cap Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.40% for IEUS and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.21 vs 0.65), 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.