VEU vs. VGK

Last updated Jun 24, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, VEU returned 10.40%/yr vs 10.38%/yr for VGK. Their correlation of 0.94 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.06%/yr for VGK.

Performance

VEU vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) 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, VEU achieves a 13.01% return, which is significantly higher than VGK's 6.16% return. Both investments have delivered pretty close results over the past 10 years, with VEU having a 10.40% annualized return and VGK not far behind at 10.38%.

VEU

• 1D: -3.06%
• 1M: 0.69%
• YTD: 13.01%
• 6M: 12.81%
• 1Y: 30.08%
• 3Y*: 19.26%
• 5Y*: 8.60%
• 10Y*: 10.40%

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)

VEU vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	13.01%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
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 VEU 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	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.94

The correlation between VEU and VGK has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

VEU vs. VGK - Sectors Allocation Comparison

Sectors	VEU	VGK
Financial Services	22.6%	23.6%
Technology	21.6%	8.2%
Industrials	15.0%	19.3%
Consumer Cyclical	8.0%	6.8%
Basic Materials	7.1%	5.3%
Healthcare	6.7%	11.9%
Consumer Defensive	4.9%	8.4%
Energy	4.7%	5.3%
Communication Services	4.5%	3.3%
Utilities	3.0%	4.7%
Real Estate	1.9%	1.5%

Return for Risk

VEU vs. VGK — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 56
VEU Sortino Ratio Rank: 54
VEU Omega Ratio Rank: 57
VEU Calmar Ratio Rank: 55
VEU Martin Ratio Rank: 59

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.

VEU vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) 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.

	VEU	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.21	+0.63
Sortino ratio: Return per unit of downside risk	2.52	1.79	+0.73
Omega ratio: Gain probability vs. loss probability	1.34	1.22	+0.12
Calmar ratio: Return relative to maximum drawdown	2.64	1.59	+1.06
Martin ratio: Return relative to average drawdown	10.12	5.89	+4.24

VEU vs. VGK - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.84, which is higher than the VGK Sharpe Ratio of 1.21. The chart below compares the historical Sharpe Ratios of VEU 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

VEU vs. VGK - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for VEU and VGK.

Drawdown Indicators

	VEU	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-63.61%	+2.09%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-12.09%	+0.66%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-14.31%	+0.62%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-32.74%	+3.60%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-37.24%	+2.26%
Current Drawdown Current decline from peak	-3.06%	-1.91%	-1.15%
Average Drawdown Average peak-to-trough decline	-13.10%	-13.31%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	3.25%	-0.27%

Volatility

VEU vs. VGK - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 7.10% compared to Vanguard FTSE Europe ETF (VGK) at 4.96%. This indicates that VEU'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

	VEU	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.10%	4.96%	+2.14%
Volatility (6M) Calculated over the trailing 6-month period	14.47%	13.38%	+1.09%
Volatility (1Y) Calculated over the trailing 1-year period	16.44%	15.81%	+0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.30%	17.96%	-1.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.08%	18.56%	-1.48%

VEU vs. VGK - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than VGK's 0.06% 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%.

Dividends

VEU vs. VGK - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.56%, less than VGK's 2.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.56%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
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 VEU and VGK in my portfolio?

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

VEU has higher volatility (7.10%) compared to VGK (4.96%). In terms of maximum drawdown, VEU dropped -61.52% vs VGK's -63.61%.

Which ETF is better, VEU or VGK?

On 10-year performance, VEU leads with 10.40% vs 10.38% for VGK. On fees, VEU is cheaper at 0.04% per year. On volatility, VGK has been the lower-risk option at 4.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or VGK?

Over the 10-year period, VEU has performed better with a 10.40% return vs 10.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or VGK?

VEU is cheaper with a 0.04% expense ratio, compared with 0.06% for VGK.

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

VGK has the higher dividend yield at 2.95%, compared with 2.56% for VEU.

What is the main difference between VEU and VGK?

VEU is categorized as Foreign Large Cap Equities, while VGK is Europe Equities. VEU tracks FTSE All-World ex US Index, while VGK tracks FTSE Developed Europe All Cap Index. Their fees differ too: 0.04% for VEU and 0.06% for VGK.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 vs 1.21), 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.