VGK vs. HEDJ

Last updated Aug 2, 2026

VGK (Vanguard FTSE Europe ETF) and HEDJ (WisdomTree Europe Hedged Equity Fund) are both Europe Equities funds - VGK tracks the FTSE Developed Europe All Cap Index while HEDJ tracks the WisdomTree Europe Hedged Equity Index. Both are passively managed. Over the past 10 years, VGK returned 10.03%/yr vs 10.96%/yr for HEDJ. Their correlation of 0.81 means they have usually moved in the same direction. VGK charges 0.06%/yr vs 0.58%/yr for HEDJ.

Performance

VGK vs. HEDJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) and WisdomTree Europe Hedged Equity Fund (HEDJ). 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 higher than HEDJ's 8.59% return. Over the past 10 years, VGK has underperformed HEDJ with an annualized return of 10.03%, while HEDJ has yielded a comparatively higher 10.96% 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%

HEDJ

• 1D: -0.87%
• 1M: -0.79%
• 6M: 6.02%
• YTD: 8.59%
• 1Y: 21.05%
• 3Y*: 13.72%
• 5Y*: 10.78%
• 10Y*: 10.96%
• ALL TIME*: 8.89%

*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)
HEDJ WisdomTree Europe Hedged Equity Fund	$3.72M	$3.36M	$5.37M
VGK Vanguard FTSE Europe ETF	$214.81M	$182.15M	$234.17M

VGK vs. HEDJ - 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%
HEDJ WisdomTree Europe Hedged Equity Fund	8.59%	23.55%	5.28%	26.89%	-10.09%	23.54%	-3.35%	27.50%	-9.27%	13.51%

Correlation

The correlation between VGK and HEDJ is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.84
Correlation (All Time) Calculated using the full available price history since Dec 31, 2009	0.81

The correlation between VGK and HEDJ has been stable across timeframes, ranging from 0.81 to 0.86 - a consistent structural relationship.

VGK vs. HEDJ - Sectors Allocation Comparison

Sectors	VGK	HEDJ
Financial Services	24.1%	15.8%
Industrials	20.0%	22.6%
Healthcare	12.6%	7.9%
Technology	9.9%	13.2%
Consumer Defensive	7.8%	12.7%
Consumer Cyclical	7.0%	12.9%
Basic Materials	5.2%	6.6%
Energy	4.5%	3.4%
Utilities	4.5%	-
Communication Services	2.8%	4.7%
Real Estate	1.5%	-

Return for Risk

VGK vs. HEDJ — 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

HEDJ

HEDJ Risk / Return Rank: 48
HEDJ Sharpe Ratio Rank: 48
HEDJ Sortino Ratio Rank: 48
HEDJ Omega Ratio Rank: 47
HEDJ Calmar Ratio Rank: 43
HEDJ Martin Ratio Rank: 54

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. HEDJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and WisdomTree Europe Hedged Equity Fund (HEDJ). 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	HEDJ	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.17	+0.31
Sortino ratio: Return per unit of downside risk	2.16	1.75	+0.41
Omega ratio: Gain probability vs. loss probability	1.26	1.22	+0.05
Calmar ratio: Return relative to maximum drawdown	1.95	1.54	+0.40
Martin ratio: Return relative to average drawdown	7.41	6.28	+1.13

VGK vs. HEDJ - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.48, which is comparable to the HEDJ Sharpe Ratio of 1.17. The chart below compares the historical Sharpe Ratios of VGK and HEDJ, 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. HEDJ - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than HEDJ's maximum drawdown of -38.18%. Use the drawdown chart below to compare losses from any high point for VGK and HEDJ.

Drawdown Indicators

	VGK	HEDJ	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-38.18%	-25.43%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-11.90%	-0.19%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-15.93%	+1.62%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-22.17%	-10.57%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-38.18%	+0.94%
Current Drawdown Current decline from peak	-0.44%	-1.22%	+0.78%
Average Drawdown Average peak-to-trough decline	-13.25%	-5.87%	-7.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	2.92%	+0.25%

Volatility

VGK vs. HEDJ - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) and WisdomTree Europe Hedged Equity Fund (HEDJ) have volatilities of 4.44% and 4.39%, 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

	VGK	HEDJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	4.39%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	13.76%	13.20%	+0.56%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	15.74%	+0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	16.86%	+1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.49%	18.15%	+0.34%

VGK vs. HEDJ - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is lower than HEDJ's 0.58% expense ratio.

Dividends

VGK vs. HEDJ - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.83%, more than HEDJ's 1.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEDJ WisdomTree Europe Hedged Equity Fund	1.79%	1.63%	3.28%	3.31%	2.83%	2.08%	2.65%	1.82%	2.73%	2.27%	2.74%	9.43%
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 HEDJ in my portfolio?

VGK and HEDJ have a correlation of 0.86, 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 HEDJ?

VGK has higher volatility (4.44%) compared to HEDJ (4.39%). In terms of maximum drawdown, VGK dropped -63.61% vs HEDJ's -38.18%.

Which ETF is better, VGK or HEDJ?

On 10-year performance, HEDJ leads with 10.96% vs 10.03% for VGK. On fees, VGK is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or HEDJ?

Over the 10-year period, HEDJ has performed better with a 10.96% 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 HEDJ?

VGK is cheaper with a 0.06% expense ratio, compared with 0.58% for HEDJ.

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

VGK has the higher dividend yield at 2.83%, compared with 1.79% for HEDJ.

What is the main difference between VGK and HEDJ?

VGK tracks FTSE Developed Europe All Cap Index, while HEDJ tracks WisdomTree Europe Hedged Equity Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.06% for VGK and 0.58% for HEDJ.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.48 vs 1.17), 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.