VGK vs. IEUR

Last updated Jun 24, 2026

VGK (Vanguard FTSE Europe ETF) and IEUR (iShares Core MSCI Europe ETF) are both Europe Equities funds - VGK tracks the FTSE Developed Europe All Cap Index while IEUR tracks the MSCI Europe Investable Market Index. Both are passively managed. Over the past 10 years, VGK returned 10.38%/yr vs 10.23%/yr for IEUR. With a 0.99 correlation, they move nearly in lockstep. VGK charges 0.06%/yr vs 0.09%/yr for IEUR.

Performance

VGK vs. IEUR - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VGK having a 6.16% return and IEUR slightly higher at 6.23%. Both investments have delivered pretty close results over the past 10 years, with VGK having a 10.38% annualized return and IEUR not far behind at 10.23%.

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%

IEUR

• 1D: -1.07%
• 1M: -0.12%
• YTD: 6.23%
• 6M: 6.35%
• 1Y: 18.45%
• 3Y*: 16.54%
• 5Y*: 8.37%
• 10Y*: 10.23%

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

VGK vs. IEUR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
IEUR iShares Core MSCI Europe ETF	6.23%	35.67%	1.40%	19.71%	-15.90%	16.71%	5.31%	24.95%	-14.86%	26.70%

Correlation

The correlation between VGK and IEUR is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.99

The correlation between VGK and IEUR has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VGK vs. IEUR - Sectors Allocation Comparison

Sectors	VGK	IEUR
Financial Services	23.6%	22.5%
Industrials	19.3%	20.3%
Healthcare	11.9%	12.5%
Consumer Defensive	8.4%	7.7%
Technology	8.2%	9.4%
Consumer Cyclical	6.8%	7.0%
Basic Materials	5.3%	5.8%
Energy	5.3%	4.9%
Utilities	4.7%	4.4%
Communication Services	3.3%	3.9%
Real Estate	1.5%	1.5%

Return for Risk

VGK vs. IEUR — Risk / Return Rank

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

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

IEUR

IEUR Risk / Return Rank: 34
IEUR Sharpe Ratio Rank: 34
IEUR Sortino Ratio Rank: 34
IEUR Omega Ratio Rank: 33
IEUR Calmar Ratio Rank: 32
IEUR Martin Ratio Rank: 38

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. IEUR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and iShares Core MSCI Europe ETF (IEUR). 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	IEUR	Difference
Sharpe ratio: Return per unit of total volatility	1.21	1.18	+0.03
Sortino ratio: Return per unit of downside risk	1.79	1.75	+0.04
Omega ratio: Gain probability vs. loss probability	1.22	1.21	+0.01
Calmar ratio: Return relative to maximum drawdown	1.59	1.54	+0.05
Martin ratio: Return relative to average drawdown	5.89	5.77	+0.12

VGK vs. IEUR - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.21, which is comparable to the IEUR Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of VGK and IEUR, 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. IEUR - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than IEUR's maximum drawdown of -36.96%. Use the drawdown chart below to compare losses from any high point for VGK and IEUR.

Drawdown Indicators

	VGK	IEUR	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-36.96%	-26.65%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-12.04%	-0.05%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-14.25%	-0.06%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-32.75%	+0.01%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-36.96%	-0.28%
Current Drawdown Current decline from peak	-1.91%	-1.77%	-0.14%
Average Drawdown Average peak-to-trough decline	-13.31%	-8.19%	-5.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	3.21%	+0.04%

Volatility

VGK vs. IEUR - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) and iShares Core MSCI Europe ETF (IEUR) have volatilities of 4.96% and 4.86%, 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	IEUR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.96%	4.86%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	13.38%	13.31%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	15.81%	15.72%	+0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.96%	17.79%	+0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.56%	18.30%	+0.26%

VGK vs. IEUR - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is lower than IEUR's 0.09% 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. IEUR - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.95%, less than IEUR's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEUR iShares Core MSCI Europe ETF	3.24%	2.97%	3.54%	3.17%	3.05%	2.88%	2.13%	3.26%	3.76%	2.64%	3.19%	2.79%
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 VGK and IEUR in my portfolio?

With a correlation of 1.00, VGK and IEUR 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, VGK or IEUR?

VGK has higher volatility (4.96%) compared to IEUR (4.86%). In terms of maximum drawdown, VGK dropped -63.61% vs IEUR's -36.96%.

Which ETF is better, VGK or IEUR?

On 10-year performance, VGK leads with 10.38% vs 10.23% for IEUR. On fees, VGK is cheaper at 0.06% per year. On volatility, IEUR has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or IEUR?

Over the 10-year period, VGK has performed better with a 10.38% return vs 10.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or IEUR?

VGK is cheaper with a 0.06% expense ratio, compared with 0.09% for IEUR.

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

IEUR has the higher dividend yield at 3.24%, compared with 2.95% for VGK.

What is the main difference between VGK and IEUR?

VGK tracks FTSE Developed Europe All Cap Index, while IEUR tracks MSCI Europe Investable Market Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VGK and 0.09% for IEUR.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.21 vs 1.18), 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.