VGK vs. EWY

Last updated Aug 2, 2026

VGK (Vanguard FTSE Europe ETF) and EWY (iShares MSCI South Korea ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while EWY is a South Korea Equities fund tracking the MSCI Korea Index. Both are passively managed. Over the past 10 years, VGK returned 10.03%/yr vs 13.13%/yr for EWY. Their 0.66 correlation means they have sometimes moved together and sometimes differently. VGK charges 0.06%/yr vs 0.59%/yr for EWY.

Performance

VGK vs. EWY - Performance Comparison

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

Returns By Period

In the year-to-date period, VGK achieves a 10.34% return, which is significantly lower than EWY's 61.59% return. Over the past 10 years, VGK has underperformed EWY with an annualized return of 10.03%, while EWY has yielded a comparatively higher 13.13% annualized return.

VGK

• 1D: -0.44%
• 1M: 1.39%
• 6M: 5.43%
• YTD: 10.34%
• 1Y: 24.06%
• 3Y*: 16.62%
• 5Y*: 9.31%
• 10Y*: 10.03%
• ALL TIME*: 6.47%

EWY

• 1D: -2.55%
• 1M: -12.79%
• 6M: 28.34%
• YTD: 61.59%
• 1Y: 127.36%
• 3Y*: 35.68%
• 5Y*: 14.47%
• 10Y*: 13.13%
• ALL TIME*: 9.64%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
EWY iShares MSCI South Korea ETF	$4.45B	$4.55B	$4.16B
VGK Vanguard FTSE Europe ETF	$214.81M	$182.15M	$234.17M

VGK vs. EWY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	10.34%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
EWY iShares MSCI South Korea ETF	61.59%	95.33%	-20.48%	19.05%	-26.59%	-7.58%	39.43%	7.97%	-20.37%	44.97%

Correlation

The correlation between VGK and EWY is 0.53, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.53
Correlation (3Y) Balances recent behavior with more history.	0.56
Correlation (5Y) Shows whether the relationship held over a longer period.	0.61
Correlation (10Y) Provides a long-term view across more market conditions.	0.63
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005	0.66

The correlation between VGK and EWY shifts across timeframes, from 0.53 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.

VGK vs. EWY - Sectors Allocation Comparison

Sectors	VGK	EWY
Financial Services	24.1%	11.4%
Industrials	20.0%	15.7%
Healthcare	12.6%	3.6%
Technology	9.9%	54.1%
Consumer Defensive	7.8%	2.2%
Consumer Cyclical	7.0%	5.9%
Basic Materials	5.2%	2.2%
Energy	4.5%	1.0%
Utilities	4.5%	0.4%
Communication Services	2.8%	2.9%
Real Estate	1.5%	-

Return for Risk

VGK vs. EWY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGK

VGK Risk / Return Rank: 62
VGK Sharpe Ratio Rank: 65
VGK Sortino Ratio Rank: 66
VGK Omega Ratio Rank: 61
VGK Calmar Ratio Rank: 55
VGK Martin Ratio Rank: 62

EWY

EWY Risk / Return Rank: 86
EWY Sharpe Ratio Rank: 90
EWY Sortino Ratio Rank: 80
EWY Omega Ratio Rank: 84
EWY Calmar Ratio Rank: 88
EWY Martin Ratio Rank: 87

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGK vs. EWY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and iShares MSCI South Korea ETF (EWY). 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	EWY	Difference
Sharpe ratio: Return per unit of total volatility	1.48	2.24	-0.75
Sortino ratio: Return per unit of downside risk	2.16	2.59	-0.43
Omega ratio: Gain probability vs. loss probability	1.26	1.36	-0.10
Calmar ratio: Return relative to maximum drawdown	1.95	3.55	-1.60
Martin ratio: Return relative to average drawdown	7.41	12.67	-5.26

VGK vs. EWY - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.48, which is lower than the EWY Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of VGK and EWY, 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. EWY - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, smaller than the maximum EWY drawdown of -74.14%. Use the drawdown chart below to compare losses from any high point for VGK and EWY.

Drawdown Indicators

	VGK	EWY	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-74.14%	+10.53%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-34.21%	+22.12%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-34.21%	+19.90%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-47.15%	+14.41%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-49.73%	+12.49%
Current Drawdown Current decline from peak	-0.44%	-28.33%	+27.89%
Average Drawdown Average peak-to-trough decline	-13.25%	-20.10%	+6.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	9.56%	-6.39%

Volatility

VGK vs. EWY - Volatility Comparison

The current volatility for Vanguard FTSE Europe ETF (VGK) is 4.44%, while iShares MSCI South Korea ETF (EWY) has a volatility of 22.08%. This indicates that VGK experiences smaller price fluctuations and is considered to be less risky than EWY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	EWY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	22.08%	-17.64%
Volatility (6M) Calculated over the trailing 6-month period	13.76%	50.88%	-37.12%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	54.29%	-38.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	32.77%	-14.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.49%	29.38%	-10.89%

VGK vs. EWY - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is lower than EWY's 0.59% expense ratio.

Dividends

VGK vs. EWY - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.83%, more than EWY's 1.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWY iShares MSCI South Korea ETF	1.30%	2.10%	2.55%	2.52%	1.23%	2.16%	0.73%	2.10%	1.34%	2.90%	1.21%	2.42%
VGK Vanguard FTSE Europe ETF	2.83%	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 EWY in my portfolio?

VGK and EWY have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGK or EWY?

EWY has higher volatility (22.08%) compared to VGK (4.44%). In terms of maximum drawdown, VGK dropped -63.61% vs EWY's -74.14%.

Which ETF is better, VGK or EWY?

On 10-year performance, EWY leads with 13.13% vs 10.03% for VGK. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 4.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or EWY?

Over the 10-year period, EWY has performed better with a 13.13% return vs 10.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or EWY?

VGK is cheaper with a 0.06% expense ratio, compared with 0.59% for EWY.

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

VGK has the higher dividend yield at 2.83%, compared with 1.30% for EWY.

What is the main difference between VGK and EWY?

VGK is categorized as Europe Equities, while EWY is South Korea Equities. VGK tracks FTSE Developed Europe All Cap Index, while EWY tracks MSCI Korea Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VGK and 0.59% for EWY.

Which has better risk-adjusted returns?

EWY currently has the higher Sharpe Ratio (2.24 vs 1.48), 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.