VGK vs. IEV
VGK (Vanguard FTSE Europe ETF) and IEV (iShares Europe ETF) are both Europe Equities funds - VGK tracks the FTSE Developed Europe All Cap Index while IEV tracks the S&P Europe 350 Index. Both are passively managed. Over the past 10 years, VGK returned 10.28%/yr vs 10.08%/yr for IEV. With a 0.99 correlation, they move nearly in lockstep. VGK charges 0.06%/yr vs 0.59%/yr for IEV.
Performance
VGK vs. IEV - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VGK having a 7.69% return and IEV slightly lower at 7.67%. Both investments have delivered pretty close results over the past 10 years, with VGK having a 10.28% annualized return and IEV not far behind at 10.08%.
VGK
- 1D
- 0.18%
- 1M
- 2.31%
- YTD
- 7.69%
- 6M
- 9.92%
- 1Y
- 17.91%
- 3Y*
- 16.69%
- 5Y*
- 8.50%
- 10Y*
- 10.28%
IEV
- 1D
- 0.24%
- 1M
- 2.53%
- YTD
- 7.67%
- 6M
- 9.80%
- 1Y
- 17.70%
- 3Y*
- 16.38%
- 5Y*
- 8.81%
- 10Y*
- 10.08%
VGK vs. IEV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGK Vanguard FTSE Europe ETF | 7.69% | 35.83% | 1.88% | 20.19% | -15.98% | 16.89% | 5.43% | 24.85% | -14.89% | 26.98% |
IEV iShares Europe ETF | 7.67% | 35.63% | 1.36% | 20.14% | -14.24% | 16.73% | 4.07% | 24.03% | -14.68% | 24.84% |
Correlation
The correlation between VGK and IEV is 0.99 - 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 | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | 0.99 |
The correlation between VGK and IEV has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.
VGK vs. IEV - Sectors Allocation Comparison
Sectors
VGK
IEV
Financial Services
Industrials
Healthcare
Consumer Defensive
Technology
Consumer Cyclical
Basic Materials
Energy
Utilities
Communication Services
Real Estate
Financial Services
VGK
IEV
Industrials
VGK
IEV
Healthcare
VGK
IEV
Consumer Defensive
VGK
IEV
Technology
VGK
IEV
Consumer Cyclical
VGK
IEV
Basic Materials
VGK
IEV
Energy
VGK
IEV
Utilities
VGK
IEV
Communication Services
VGK
IEV
Real Estate
VGK
IEV
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Return for Risk
VGK vs. IEV — Risk / Return Rank
VGK
IEV
VGK vs. IEV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and iShares Europe ETF (IEV). 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 | IEV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.20 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.49 | 1.44 | +0.04 |
| Martin ratioReturn relative to average drawdown | 5.52 | 5.27 | +0.25 |
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Drawdowns
VGK vs. IEV - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, roughly equal to the maximum IEV drawdown of -63.27%. Use the drawdown chart below to compare losses from any high point for VGK and IEV.
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Drawdown Indicators
| VGK | IEV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.61% | -63.27% | -0.34% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -12.31% | +0.22% |
Max Drawdown (3Y)Largest decline over 3 years | -14.31% | -14.63% | +0.32% |
Max Drawdown (5Y)Largest decline over 5 years | -32.74% | -30.60% | -2.14% |
Max Drawdown (10Y)Largest decline over 10 years | -37.24% | -36.62% | -0.62% |
Current DrawdownCurrent decline from peak | -0.50% | -0.66% | +0.16% |
Average DrawdownAverage peak-to-trough decline | -13.33% | -15.03% | +1.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.27% | 3.39% | -0.12% |
Volatility
VGK vs. IEV - Volatility Comparison
Vanguard FTSE Europe ETF (VGK) and iShares Europe ETF (IEV) have volatilities of 5.82% and 5.78%, 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.
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Volatility by Period
| VGK | IEV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.82% | 5.78% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 13.36% | 13.54% | -0.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.92% | 16.13% | -0.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.98% | 17.66% | +0.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.95% | 18.66% | +0.29% |
VGK vs. IEV - Expense Ratio Comparison
VGK has a 0.06% expense ratio, which is lower than IEV's 0.59% expense ratio.
Dividends
VGK vs. IEV - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 2.76%, more than IEV's 2.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEV iShares Europe ETF | 2.54% | 2.73% | 3.10% | 2.77% | 3.06% | 2.81% | 1.76% | 3.06% | 3.43% | 2.39% | 3.08% | 2.81% |
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
With a correlation of 0.99, VGK and IEV 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.
VGK has higher volatility (5.82%) compared to IEV (5.78%). In terms of maximum drawdown, VGK dropped -63.61% vs IEV's -63.27%.
On 10-year performance, VGK leads with 10.28% vs 10.08% for IEV. 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.
Over the 10-year period, VGK has performed better with a 10.28% return vs 10.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGK is cheaper with a 0.06% expense ratio, compared with 0.59% for IEV.
VGK has the higher dividend yield at 2.76%, compared with 2.54% for IEV.
VGK tracks FTSE Developed Europe All Cap Index, while IEV tracks S&P Europe 350 Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VGK and 0.59% for IEV.
VGK currently has the higher Sharpe Ratio (1.13 vs 1.10), 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.
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