VEA vs. VGK
Compare and contrast key facts about Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE Europe ETF (VGK).
VEA and VGK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. VGK is a passively managed fund by Vanguard that tracks the performance of the FTSE Developed Europe Index. It was launched on Mar 4, 2005. Both VEA and VGK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VEA or VGK.
Key characteristics
| VEA | VGK | |
|---|---|---|
| YTD Return | 2.32% | 2.94% |
| 1Y Return | 10.28% | 9.22% |
| 3Y Return (Ann) | 1.55% | 3.10% |
| 5Y Return (Ann) | 6.28% | 6.99% |
| 10Y Return (Ann) | 4.72% | 4.35% |
| Sharpe Ratio | 0.67 | 0.55 |
| Daily Std Dev | 12.80% | 13.34% |
| Max Drawdown | -60.70% | -63.61% |
| Current Drawdown | -3.06% | -2.15% |
Correlation
The correlation between VEA and VGK is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VEA vs. VGK - Performance Comparison
In the year-to-date period, VEA achieves a 2.32% return, which is significantly lower than VGK's 2.94% return. Over the past 10 years, VEA has outperformed VGK with an annualized return of 4.72%, while VGK has yielded a comparatively lower 4.35% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VEA vs. VGK - Expense Ratio Comparison
VEA has a 0.05% expense ratio, which is lower than VGK's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VEA vs. VGK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) 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.
Dividends
VEA vs. VGK - Dividend Comparison
VEA's dividend yield for the trailing twelve months is around 3.36%, more than VGK's 3.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 3.36% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
VGK Vanguard FTSE Europe ETF | 3.31% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% | 4.62% | 2.77% |
Drawdowns
VEA vs. VGK - Drawdown Comparison
The maximum VEA drawdown since its inception was -60.70%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for VEA and VGK. For additional features, visit the drawdowns tool.
Volatility
VEA vs. VGK - Volatility Comparison
Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE Europe ETF (VGK) have volatilities of 3.42% and 3.45%, 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.