VGK vs. VEA
Compare and contrast key facts about Vanguard FTSE Europe ETF (VGK) and Vanguard FTSE Developed Markets ETF (VEA).
VGK and VEA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGK is a passively managed fund by Vanguard that tracks the performance of the FTSE Developed Europe Index. It was launched on Mar 4, 2005. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both VGK and VEA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGK or VEA.
Key characteristics
| VGK | VEA | |
|---|---|---|
| YTD Return | 3.53% | 2.64% |
| 1Y Return | 8.50% | 9.22% |
| 3Y Return (Ann) | 3.18% | 1.71% |
| 5Y Return (Ann) | 7.10% | 6.34% |
| 10Y Return (Ann) | 4.30% | 4.65% |
| Sharpe Ratio | 0.74 | 0.83 |
| Daily Std Dev | 13.25% | 12.73% |
| Max Drawdown | -63.61% | -60.70% |
| Current Drawdown | -1.59% | -2.77% |
Correlation
The correlation between VGK and VEA is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VGK vs. VEA - Performance Comparison
In the year-to-date period, VGK achieves a 3.53% return, which is significantly higher than VEA's 2.64% return. Over the past 10 years, VGK has underperformed VEA with an annualized return of 4.30%, while VEA has yielded a comparatively higher 4.65% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VGK vs. VEA - Expense Ratio Comparison
VGK has a 0.08% expense ratio, which is higher than VEA's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VGK vs. VEA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard FTSE Developed Markets ETF (VEA). 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.
Dividends
VGK vs. VEA - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 3.29%, less than VEA's 3.35% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGK Vanguard FTSE Europe ETF | 3.29% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% | 4.62% | 2.77% |
VEA Vanguard FTSE Developed Markets ETF | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
VGK vs. VEA - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, roughly equal to the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for VGK and VEA. For additional features, visit the drawdowns tool.
Volatility
VGK vs. VEA - Volatility Comparison
Vanguard FTSE Europe ETF (VGK) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 3.47% and 3.44%, 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.