ISEU.L vs. VGK

Last updated Jun 5, 2026

ISEU.L (iShares MSCI Europe UCITS Dist) and VGK (Vanguard FTSE Europe ETF) are both Europe Equities funds - ISEU.L tracks the MSCI Europe NR EUR while VGK tracks the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 5 years, ISEU.L returned 8.98%/yr vs 8.48%/yr for VGK. A 0.74 correlation means they provide meaningful diversification when combined. ISEU.L charges 1.00%/yr vs 0.06%/yr for VGK.

Performance

ISEU.L vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Europe UCITS Dist (ISEU.L) 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 ISEU.L having a 6.49% return and VGK slightly higher at 6.81%.

ISEU.L

• 1D: 0.66%
• 1M: 2.76%
• YTD: 6.49%
• 6M: 9.55%
• 1Y: 18.11%
• 3Y*: 16.86%
• 5Y*: 8.98%
• 10Y*: —

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)

ISEU.L vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ISEU.L iShares MSCI Europe UCITS Dist	6.49%	35.19%	2.19%	19.52%	-13.73%	15.84%	5.73%	23.56%	-14.38%	26.22%
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 ISEU.L and VGK is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Nov 29, 2016	0.74

The correlation between ISEU.L and VGK has been stable across timeframes, ranging from 0.74 to 0.75 - a consistent structural relationship.

ISEU.L vs. VGK - Sectors Allocation Comparison

Sectors	ISEU.L	VGK
Financial Services	23.3%	23.9%
Industrials	19.7%	19.5%
Healthcare	13.1%	12.1%
Technology	8.6%	8.3%
Consumer Defensive	8.4%	8.5%
Consumer Cyclical	6.3%	6.8%
Basic Materials	5.6%	5.4%
Energy	5.4%	5.3%
Utilities	5.1%	4.8%
Communication Services	3.7%	3.3%
Real Estate	0.8%	1.5%

Return for Risk

ISEU.L vs. VGK — Risk / Return Rank

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

ISEU.L

ISEU.L Risk / Return Rank: 34
ISEU.L Sharpe Ratio Rank: 34
ISEU.L Sortino Ratio Rank: 34
ISEU.L Omega Ratio Rank: 34
ISEU.L Calmar Ratio Rank: 33
ISEU.L Martin Ratio Rank: 37

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.

ISEU.L vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Europe UCITS Dist (ISEU.L) 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.

	ISEU.L	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.21	-0.02
Sortino ratio: Return per unit of downside risk	1.77	1.77	0.00
Omega ratio: Gain probability vs. loss probability	1.22	1.22	+0.01
Calmar ratio: Return relative to maximum drawdown	1.57	1.54	+0.03
Martin ratio: Return relative to average drawdown	5.63	5.73	-0.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ISEU.L vs. VGK - Sharpe Ratio Comparison

The current ISEU.L 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 ISEU.L 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

	ISEU.L	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	0.51	0.48	+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	0.60	0.28	+0.33

Drawdowns

ISEU.L vs. VGK - Drawdown Comparison

The maximum ISEU.L drawdown since its inception was -36.02%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for ISEU.L and VGK.

Drawdown Indicators

	ISEU.L	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-36.02%	-63.61%	+27.59%
Max Drawdown (1Y) Largest decline over 1 year	-11.47%	-12.09%	+0.62%
Max Drawdown (3Y) Largest decline over 3 years	-14.15%	-14.31%	+0.16%
Max Drawdown (5Y) Largest decline over 5 years	-30.77%	-32.74%	+1.97%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.24%	—
Current Drawdown Current decline from peak	-1.38%	-1.31%	-0.07%
Average Drawdown Average peak-to-trough decline	-6.33%	-13.34%	+7.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.21%	3.25%	-0.04%

Volatility

ISEU.L vs. VGK - Volatility Comparison

iShares MSCI Europe UCITS Dist (ISEU.L) and Vanguard FTSE Europe ETF (VGK) have volatilities of 5.35% 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

	ISEU.L	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.35%	5.63%	-0.28%
Volatility (6M) Calculated over the trailing 6-month period	12.62%	12.81%	-0.19%
Volatility (1Y) Calculated over the trailing 1-year period	15.14%	15.41%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.66%	17.90%	-0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.61%	18.96%	-1.35%

ISEU.L vs. VGK - Expense Ratio Comparison

ISEU.L has a 1.00% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

ISEU.L vs. VGK - Dividend Comparison

ISEU.L's dividend yield for the trailing twelve months is around 2.54%, less than VGK's 2.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ISEU.L iShares MSCI Europe UCITS Dist	2.54%	2.46%	3.00%	2.81%	2.86%	2.36%	1.91%	3.03%	3.28%	2.48%	0.00%	0.00%
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 ISEU.L and VGK in my portfolio?

ISEU.L and VGK have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ISEU.L or VGK?

On fees, VGK is cheaper at 0.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ISEU.L or VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 1.00% for ISEU.L.

What is the main difference between ISEU.L and VGK?

ISEU.L tracks MSCI Europe NR EUR, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 1.00% for ISEU.L and 0.06% for VGK.