VGK vs. ESIH.L

Last updated Jun 14, 2026

VGK (Vanguard FTSE Europe ETF) and ESIH.L (iShares MSCI Europe Health Care Sector UCITS ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while ESIH.L is a Health & Biotech Equities fund tracking the MSCI World/Health Care NR USD. Both are passively managed. Over the past 5 years, VGK returned 8.50%/yr vs 4.26%/yr for ESIH.L. A 0.56 correlation means they provide meaningful diversification when combined. VGK charges 0.06%/yr vs 0.18%/yr for ESIH.L.

Performance

VGK vs. ESIH.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) and iShares MSCI Europe Health Care Sector UCITS ETF (ESIH.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VGK is traded in USD, while ESIH.L is traded in GBP. To make them comparable, the ESIH.L values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VGK achieves a 7.69% return, which is significantly higher than ESIH.L's -1.42% return.

VGK

• 1D: 0.18%
• 1M: 2.46%
• YTD: 7.69%
• 6M: 9.92%
• 1Y: 19.73%
• 3Y*: 16.69%
• 5Y*: 8.50%
• 10Y*: 10.28%

ESIH.L

• 1D: 0.66%
• 1M: 1.44%
• YTD: -1.42%
• 6M: 0.22%
• 1Y: 6.81%
• 3Y*: 6.18%
• 5Y*: 4.26%
• 10Y*: —

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

VGK vs. ESIH.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VGK Vanguard FTSE Europe ETF	7.69%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.31%
ESIH.L iShares MSCI Europe Health Care Sector UCITS ETF	-1.42%	21.28%	-2.20%	11.03%	-9.30%	16.03%	-8.10%

Correlation

The correlation between VGK and ESIH.L is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Nov 17, 2020	0.56

The correlation between VGK and ESIH.L has been stable across timeframes, ranging from 0.56 to 0.57 - a consistent structural relationship.

VGK vs. ESIH.L - Sectors Allocation Comparison

Sectors	VGK	ESIH.L
Financial Services	23.6%	-
Industrials	19.3%	-
Healthcare	11.9%	100.0%
Consumer Defensive	8.4%	-
Technology	8.2%	-
Consumer Cyclical	6.8%	-
Basic Materials	5.3%	-
Energy	5.3%	-
Utilities	4.7%	-
Communication Services	3.3%	-
Real Estate	1.5%	-

Return for Risk

VGK vs. ESIH.L — Risk / Return Rank

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

VGK

VGK Risk / Return Rank: 36
VGK Sharpe Ratio Rank: 36
VGK Sortino Ratio Rank: 36
VGK Omega Ratio Rank: 34
VGK Calmar Ratio Rank: 34
VGK Martin Ratio Rank: 39

ESIH.L

ESIH.L Risk / Return Rank: 16
ESIH.L Sharpe Ratio Rank: 16
ESIH.L Sortino Ratio Rank: 16
ESIH.L Omega Ratio Rank: 16
ESIH.L Calmar Ratio Rank: 16
ESIH.L Martin Ratio Rank: 16

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and iShares MSCI Europe Health Care Sector UCITS ETF (ESIH.L). 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.

	VGK	ESIH.L	Difference
Sharpe ratio: Return per unit of total volatility	1.13	0.29	+0.84
Sortino ratio: Return per unit of downside risk	1.68	0.55	+1.13
Omega ratio: Gain probability vs. loss probability	1.20	1.06	+0.14
Calmar ratio: Return relative to maximum drawdown	1.49	0.35	+1.14
Martin ratio: Return relative to average drawdown	5.52	0.82	+4.70

VGK vs. ESIH.L - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.13, which is higher than the ESIH.L Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of VGK and ESIH.L, 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

VGK vs. ESIH.L - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than ESIH.L's maximum drawdown of -29.18%. Use the drawdown chart below to compare losses from any high point for VGK and ESIH.L.

Drawdown Indicators

	VGK	ESIH.L	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-29.18%	-34.43%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-14.92%	+2.83%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-26.24%	+11.93%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-29.18%	-3.56%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	—	—
Current Drawdown Current decline from peak	-0.50%	-10.47%	+9.97%
Average Drawdown Average peak-to-trough decline	-13.33%	-8.71%	-4.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	6.34%	-3.07%

Volatility

VGK vs. ESIH.L - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.82% compared to iShares MSCI Europe Health Care Sector UCITS ETF (ESIH.L) at 5.10%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier than ESIH.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	ESIH.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.82%	5.10%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	13.36%	13.29%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	15.92%	18.32%	-2.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.98%	19.22%	-1.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.95%	19.34%	-0.39%

VGK vs. ESIH.L - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is lower than ESIH.L's 0.18% 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

VGK vs. ESIH.L - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.76%, while ESIH.L has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESIH.L iShares MSCI Europe Health Care Sector UCITS ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VGK Vanguard FTSE Europe ETF	2.76%	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 VGK and ESIH.L in my portfolio?

VGK and ESIH.L have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VGK or ESIH.L?

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, VGK or ESIH.L?

VGK is cheaper with a 0.06% expense ratio, compared with 0.18% for ESIH.L.

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

VGK is categorized as Europe Equities, while ESIH.L is Health & Biotech Equities. VGK tracks FTSE Developed Europe All Cap Index, while ESIH.L tracks MSCI World/Health Care NR USD. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VGK and 0.18% for ESIH.L.