VGK vs. VGT
Compare and contrast key facts about Vanguard FTSE Europe ETF (VGK) and Vanguard Information Technology ETF (VGT).
VGK and VGT 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. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both VGK and VGT 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 VGT.
Key characteristics
| VGK | VGT | |
|---|---|---|
| YTD Return | 3.53% | 4.37% |
| 1Y Return | 8.50% | 33.52% |
| 3Y Return (Ann) | 3.18% | 10.11% |
| 5Y Return (Ann) | 7.10% | 19.92% |
| 10Y Return (Ann) | 4.30% | 20.10% |
| Sharpe Ratio | 0.74 | 1.98 |
| Daily Std Dev | 13.25% | 18.20% |
| Max Drawdown | -63.61% | -54.63% |
| Current Drawdown | -1.59% | -4.72% |
Correlation
The correlation between VGK and VGT is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VGK vs. VGT - Performance Comparison
In the year-to-date period, VGK achieves a 3.53% return, which is significantly lower than VGT's 4.37% return. Over the past 10 years, VGK has underperformed VGT with an annualized return of 4.30%, while VGT has yielded a comparatively higher 20.10% 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. VGT - Expense Ratio Comparison
VGK has a 0.08% expense ratio, which is lower than VGT's 0.10% 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%.
Risk-Adjusted Performance
VGK vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard Information Technology ETF (VGT). 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. VGT - Dividend Comparison
VGK's dividend yield for the trailing twelve months is around 3.29%, more than VGT's 0.72% 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% |
VGT Vanguard Information Technology ETF | 0.72% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
VGK vs. VGT - Drawdown Comparison
The maximum VGK drawdown since its inception was -63.61%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VGK and VGT. For additional features, visit the drawdowns tool.
Volatility
VGK vs. VGT - Volatility Comparison
The current volatility for Vanguard FTSE Europe ETF (VGK) is 3.47%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.97%. This indicates that VGK experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.