VGK vs. VT

Last updated Jun 4, 2026

VGK (Vanguard FTSE Europe ETF) and VT (Vanguard Total World Stock ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. Both are passively managed. Over the past 10 years, VGK returned 9.26%/yr vs 12.74%/yr for VT. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.06% expense ratio.

Performance

VGK vs. VT - Performance Comparison

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

Returns By Period

In the year-to-date period, VGK achieves a 5.62% return, which is significantly lower than VT's 12.24% return. Over the past 10 years, VGK has underperformed VT with an annualized return of 9.26%, while VT has yielded a comparatively higher 12.74% annualized return.

VGK

• 1D: -1.19%
• 1M: 2.79%
• YTD: 5.62%
• 6M: 8.66%
• 1Y: 18.01%
• 3Y*: 16.32%
• 5Y*: 8.24%
• 10Y*: 9.26%

VT

• 1D: -0.88%
• 1M: 4.91%
• YTD: 12.24%
• 6M: 13.14%
• 1Y: 29.24%
• 3Y*: 20.93%
• 5Y*: 10.99%
• 10Y*: 12.74%

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

VGK vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	5.62%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
VT Vanguard Total World Stock ETF	12.24%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%

Correlation

The correlation between VGK and VT is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jun 27, 2008	0.89

The correlation between VGK and VT has been stable across timeframes, ranging from 0.83 to 0.89 - a consistent structural relationship.

VGK vs. VT - Sectors Allocation Comparison

Sectors	VGK	VT
Financial Services	23.9%	15.9%
Industrials	19.5%	12.0%
Healthcare	12.1%	8.1%
Consumer Defensive	8.5%	4.8%
Technology	8.3%	27.8%
Consumer Cyclical	6.8%	9.5%
Basic Materials	5.4%	4.2%
Energy	5.3%	4.3%
Utilities	4.8%	2.7%
Communication Services	3.3%	8.3%
Real Estate	1.5%	2.4%

Return for Risk

VGK vs. VT — Risk / Return Rank

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

VGK

VGK Risk / Return Rank: 31
VGK Sharpe Ratio Rank: 31
VGK Sortino Ratio Rank: 31
VGK Omega Ratio Rank: 30
VGK Calmar Ratio Rank: 30
VGK Martin Ratio Rank: 35

VT

VT Risk / Return Rank: 67
VT Sharpe Ratio Rank: 68
VT Sortino Ratio Rank: 68
VT Omega Ratio Rank: 67
VT Calmar Ratio Rank: 60
VT Martin Ratio Rank: 71

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. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard Total World Stock ETF (VT). 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.

	VGK	VT	Difference
Sharpe ratio: Return per unit of total volatility	1.18	2.31	-1.14
Sortino ratio: Return per unit of downside risk	1.72	3.20	-1.48
Omega ratio: Gain probability vs. loss probability	1.21	1.42	-0.21
Calmar ratio: Return relative to maximum drawdown	1.50	3.04	-1.54
Martin ratio: Return relative to average drawdown	5.56	13.53	-7.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGK vs. VT - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.18, which is lower than the VT Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of VGK and VT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGK	VT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.18	2.31	-1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.69	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.74	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.44	-0.16

Drawdowns

VGK vs. VT - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than VT's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for VGK and VT.

Drawdown Indicators

	VGK	VT	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-50.27%	-13.34%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-9.67%	-2.42%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-16.51%	+2.20%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-26.38%	-6.36%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-34.24%	-3.00%
Current Drawdown Current decline from peak	-2.41%	-0.88%	-1.53%
Average Drawdown Average peak-to-trough decline	-13.34%	-7.02%	-6.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	2.17%	+1.08%

Volatility

VGK vs. VT - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) has a higher volatility of 5.73% compared to Vanguard Total World Stock ETF (VT) at 3.83%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	3.83%	+1.90%
Volatility (6M) Calculated over the trailing 6-month period	12.78%	10.17%	+2.61%
Volatility (1Y) Calculated over the trailing 1-year period	15.40%	12.70%	+2.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.90%	16.05%	+1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.96%	17.23%	+1.73%

VGK vs. VT - Expense Ratio Comparison

Both VGK and VT have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VGK vs. VT - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.82%, more than VT's 1.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGK Vanguard FTSE Europe ETF	2.82%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%
VT Vanguard Total World Stock ETF	1.59%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both VGK and VT in my portfolio?

VGK and VT have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGK or VT?

VGK has higher volatility (5.73%) compared to VT (3.83%). In terms of maximum drawdown, VGK dropped -63.61% vs VT's -50.27%.

Which ETF is better, VGK or VT?

On 10-year performance, VT leads with 12.74% vs 9.26% for VGK. Both ETFs have the same 0.06% expense ratio. On volatility, VT has been the lower-risk option at 3.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or VT?

Over the 10-year period, VT has performed better with a 12.74% return vs 9.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or VT?

VGK and VT have the same expense ratio: 0.06% per year.

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

VGK has the higher dividend yield at 2.82%, compared with 1.59% for VT.

What is the main difference between VGK and VT?

VGK is categorized as Europe Equities, while VT is Global Equities. VGK tracks FTSE Developed Europe All Cap Index, while VT tracks FTSE Global All Cap Index.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (2.31 vs 1.18), 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.