VGK vs. VEU

Last updated Jun 23, 2026

VGK (Vanguard FTSE Europe ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, VGK returned 10.52%/yr vs 10.74%/yr for VEU. Their correlation of 0.94 suggests significant overlap in exposure. VGK charges 0.06%/yr vs 0.04%/yr for VEU.

Performance

VGK vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Europe ETF (VGK) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGK achieves a 7.49% return, which is significantly lower than VEU's 16.58% return. Both investments have delivered pretty close results over the past 10 years, with VGK having a 10.52% annualized return and VEU not far ahead at 10.74%.

VGK

• 1D: -0.02%
• 1M: 1.12%
• YTD: 7.49%
• 6M: 7.98%
• 1Y: 21.63%
• 3Y*: 17.25%
• 5Y*: 9.05%
• 10Y*: 10.52%

VEU

• 1D: 0.37%
• 1M: 3.87%
• YTD: 16.58%
• 6M: 17.12%
• 1Y: 35.21%
• 3Y*: 20.50%
• 5Y*: 9.48%
• 10Y*: 10.74%

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

VGK vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	7.49%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
VEU Vanguard FTSE All-World ex-US ETF	16.58%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between VGK and VEU is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.94

The correlation between VGK and VEU has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

VGK vs. VEU - Sectors Allocation Comparison

Sectors	VGK	VEU
Financial Services	23.6%	22.6%
Industrials	19.3%	15.0%
Healthcare	11.9%	6.7%
Consumer Defensive	8.4%	4.9%
Technology	8.2%	21.6%
Consumer Cyclical	6.8%	8.0%
Basic Materials	5.3%	7.1%
Energy	5.3%	4.7%
Utilities	4.7%	3.0%
Communication Services	3.3%	4.5%
Real Estate	1.5%	1.9%

Return for Risk

VGK vs. VEU — Risk / Return Rank

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

VGK

VGK Risk / Return Rank: 39
VGK Sharpe Ratio Rank: 40
VGK Sortino Ratio Rank: 40
VGK Omega Ratio Rank: 38
VGK Calmar Ratio Rank: 37
VGK Martin Ratio Rank: 43

VEU

VEU Risk / Return Rank: 68
VEU Sharpe Ratio Rank: 70
VEU Sortino Ratio Rank: 68
VEU Omega Ratio Rank: 71
VEU Calmar Ratio Rank: 64
VEU Martin Ratio Rank: 67

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. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard FTSE All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.38	2.19	-0.81
Sortino ratio: Return per unit of downside risk	2.00	2.98	-0.98
Omega ratio: Gain probability vs. loss probability	1.25	1.40	-0.16
Calmar ratio: Return relative to maximum drawdown	1.80	3.10	-1.30
Martin ratio: Return relative to average drawdown	6.67	11.87	-5.20

VGK vs. VEU - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.38, which is lower than the VEU Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of VGK and VEU, 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. VEU - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, roughly equal to the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VGK and VEU.

Drawdown Indicators

	VGK	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-61.52%	-2.09%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-11.43%	-0.66%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-13.69%	-0.62%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-29.14%	-3.60%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-34.98%	-2.26%
Current Drawdown Current decline from peak	-0.68%	0.00%	-0.68%
Average Drawdown Average peak-to-trough decline	-13.31%	-13.10%	-0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	2.97%	+0.28%

Volatility

VGK vs. VEU - Volatility Comparison

The current volatility for Vanguard FTSE Europe ETF (VGK) is 4.82%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.30%. This indicates that VGK experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.82%	6.30%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	13.33%	14.12%	-0.79%
Volatility (1Y) Calculated over the trailing 1-year period	15.79%	16.16%	-0.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.96%	16.24%	+1.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.90%	17.23%	+1.67%

VGK vs. VEU - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is higher than VEU's 0.04% 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%.

Dividends

VGK vs. VEU - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.91%, more than VEU's 2.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.48%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VGK Vanguard FTSE Europe ETF	2.91%	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 VEU in my portfolio?

With a correlation of 0.92, VGK and VEU 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 VEU?

VEU has higher volatility (6.30%) compared to VGK (4.82%). In terms of maximum drawdown, VGK dropped -63.61% vs VEU's -61.52%.

Which ETF is better, VGK or VEU?

On 10-year performance, VEU leads with 10.74% vs 10.52% for VGK. On fees, VEU is cheaper at 0.04% per year. On volatility, VGK has been the lower-risk option at 4.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or VEU?

Over the 10-year period, VEU has performed better with a 10.74% return vs 10.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.06% for VGK.

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

VGK has the higher dividend yield at 2.91%, compared with 2.48% for VEU.

What is the main difference between VGK and VEU?

VGK is categorized as Europe Equities, while VEU is Foreign Large Cap Equities. VGK tracks FTSE Developed Europe All Cap Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.06% for VGK and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.19 vs 1.38), 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.