VGK vs. VFSTX
VGK (Vanguard FTSE Europe ETF) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while VFSTX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VGK returned 10.28%/yr vs 2.51%/yr for VFSTX. At a correlation of -0.03, they often move in opposite directions. VGK charges 0.06%/yr vs 0.20%/yr for VFSTX.
Performance
VGK vs. VFSTX - Performance Comparison
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Returns By Period
In the year-to-date period, VGK achieves a 7.69% return, which is significantly higher than VFSTX's 0.67% return. Over the past 10 years, VGK has outperformed VFSTX with an annualized return of 10.28%, while VFSTX has yielded a comparatively lower 2.51% annualized return.
VGK
- 1D
- 0.18%
- 1M
- 4.46%
- YTD
- 7.69%
- 6M
- 9.92%
- 1Y
- 19.73%
- 3Y*
- 16.69%
- 5Y*
- 8.50%
- 10Y*
- 10.28%
VFSTX
- 1D
- 0.19%
- 1M
- 0.59%
- YTD
- 0.67%
- 6M
- 1.15%
- 1Y
- 4.59%
- 3Y*
- 5.56%
- 5Y*
- 2.26%
- 10Y*
- 2.51%
VGK vs. VFSTX - 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% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 0.67% | 6.75% | 4.98% | 6.06% | -5.84% | -0.70% | 5.16% | 5.75% | 0.87% | 2.02% |
Correlation
The correlation between VGK and VFSTX is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.24 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.11 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | -0.03 |
The correlation between VGK and VFSTX shifts across timeframes, from -0.03 (all time) to 0.41 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGK vs. VFSTX — Risk / Return Rank
VGK
VFSTX
VGK vs. VFSTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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 | VFSTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.84 | ||
| Sortino ratioReturn per unit of downside risk | -1.81 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.44 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.49 | 2.64 | -1.15 |
| Martin ratioReturn relative to average drawdown | 5.52 | 10.21 | -4.70 |
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Drawdowns
VGK vs. VFSTX - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, which is greater than VFSTX's maximum drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for VGK and VFSTX.
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Drawdown Indicators
| VGK | VFSTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.61% | -9.35% | -54.26% |
Max Drawdown (1Y)Largest decline over 1 year | -12.09% | -1.71% | -10.38% |
Max Drawdown (3Y)Largest decline over 3 years | -14.31% | -1.71% | -12.60% |
Max Drawdown (5Y)Largest decline over 5 years | -32.74% | -9.35% | -23.39% |
Max Drawdown (10Y)Largest decline over 10 years | -37.24% | -9.35% | -27.89% |
Current DrawdownCurrent decline from peak | -0.50% | -0.36% | -0.14% |
Average DrawdownAverage peak-to-trough decline | -13.33% | -1.12% | -12.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.27% | 0.44% | +2.83% |
Volatility
VGK vs. VFSTX - Volatility Comparison
Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.82% compared to Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) at 0.76%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier than VFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VGK | VFSTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.82% | 0.76% | +5.06% |
Volatility (6M)Calculated over the trailing 6-month period | 13.36% | 1.68% | +11.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.92% | 2.30% | +13.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.98% | 2.98% | +15.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.95% | 2.48% | +16.47% |
VGK vs. VFSTX - Expense Ratio Comparison
VGK has a 0.06% expense ratio, which is lower than VFSTX's 0.20% 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. VFSTX - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 2.76%, less than VFSTX's 4.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 4.61% | 4.48% | 4.06% | 3.05% | 1.93% | 1.70% | 2.24% | 2.83% | 2.68% | 2.00% | 2.04% | 1.99% |
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
VGK and VFSTX have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGK has higher volatility (5.82%) compared to VFSTX (0.76%). In terms of maximum drawdown, VGK dropped -63.61% vs VFSTX's -9.35%.
VFSTX currently has the higher Sharpe Ratio (1.97 vs 1.13), 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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