VGK vs. VYM

Last updated Aug 2, 2026

VGK (Vanguard FTSE Europe ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, VGK returned 10.03%/yr vs 11.71%/yr for VYM. Their 0.76 correlation means they have sometimes moved together and sometimes differently. VGK charges 0.06%/yr vs 0.04%/yr for VYM.

Performance

VGK vs. VYM - Performance Comparison

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

Returns By Period

In the year-to-date period, VGK achieves a 10.34% return, which is significantly lower than VYM's 14.21% return. Over the past 10 years, VGK has underperformed VYM with an annualized return of 10.03%, while VYM has yielded a comparatively higher 11.71% annualized return.

VGK

• 1D: -0.44%
• 1M: 1.39%
• 6M: 5.43%
• YTD: 10.34%
• 1Y: 24.06%
• 3Y*: 16.62%
• 5Y*: 9.31%
• 10Y*: 10.03%
• ALL TIME*: 6.47%

VYM

• 1D: 0.00%
• 1M: 1.56%
• 6M: 9.31%
• YTD: 14.21%
• 1Y: 24.90%
• 3Y*: 16.96%
• 5Y*: 12.20%
• 10Y*: 11.71%
• ALL TIME*: 9.38%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VGK Vanguard FTSE Europe ETF	$214.81M	$182.15M	$234.17M
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

VGK vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGK Vanguard FTSE Europe ETF	10.34%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%
VYM Vanguard High Dividend Yield ETF	14.21%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between VGK and VYM is 0.65, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.65
Correlation (3Y) Balances recent behavior with more history.	0.65
Correlation (5Y) Shows whether the relationship held over a longer period.	0.69
Correlation (10Y) Provides a long-term view across more market conditions.	0.70
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.76

The correlation between VGK and VYM shifts across timeframes, from 0.65 (3 years) to 0.76 (all time), reflecting how their relationship changes across market environments.

VGK vs. VYM - Sectors Allocation Comparison

Sectors	VGK	VYM
Financial Services	24.1%	21.0%
Industrials	20.0%	12.6%
Healthcare	12.6%	13.2%
Technology	9.9%	17.8%
Consumer Defensive	7.8%	8.1%
Consumer Cyclical	7.0%	6.8%
Basic Materials	5.2%	3.3%
Energy	4.5%	8.6%
Utilities	4.5%	5.7%
Communication Services	2.8%	3.0%
Real Estate	1.5%	0.0%

Return for Risk

VGK vs. VYM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGK

VGK Risk / Return Rank: 62
VGK Sharpe Ratio Rank: 65
VGK Sortino Ratio Rank: 66
VGK Omega Ratio Rank: 61
VGK Calmar Ratio Rank: 55
VGK Martin Ratio Rank: 62

VYM

VYM Risk / Return Rank: 90
VYM Sharpe Ratio Rank: 92
VYM Sortino Ratio Rank: 92
VYM Omega Ratio Rank: 91
VYM Calmar Ratio Rank: 88
VYM Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGK vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe ETF (VGK) and Vanguard High Dividend Yield ETF (VYM). 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	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.48	2.34	-0.85
Sortino ratio: Return per unit of downside risk	2.16	3.35	-1.19
Omega ratio: Gain probability vs. loss probability	1.26	1.43	-0.17
Calmar ratio: Return relative to maximum drawdown	1.95	3.56	-1.62
Martin ratio: Return relative to average drawdown	7.41	13.40	-5.99

VGK vs. VYM - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.48, which is lower than the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of VGK and VYM, 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. VYM - Drawdown Comparison

The maximum VGK drawdown since its inception was -63.61%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VGK and VYM.

Drawdown Indicators

	VGK	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-63.61%	-56.98%	-6.63%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-6.69%	-5.40%
Max Drawdown (3Y) Largest decline over 3 years	-14.31%	-14.46%	+0.15%
Max Drawdown (5Y) Largest decline over 5 years	-32.74%	-15.84%	-16.90%
Max Drawdown (10Y) Largest decline over 10 years	-37.24%	-35.21%	-2.03%
Current Drawdown Current decline from peak	-0.44%	-1.15%	+0.71%
Average Drawdown Average peak-to-trough decline	-13.25%	-7.14%	-6.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	1.78%	+1.39%

Volatility

VGK vs. VYM - Volatility Comparison

Vanguard FTSE Europe ETF (VGK) has a higher volatility of 4.44% compared to Vanguard High Dividend Yield ETF (VYM) at 2.46%. This indicates that VGK's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGK	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	2.46%	+1.98%
Volatility (6M) Calculated over the trailing 6-month period	13.76%	7.42%	+6.34%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	10.29%	+5.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	13.87%	+4.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.49%	16.29%	+2.20%

VGK vs. VYM - Expense Ratio Comparison

VGK has a 0.06% expense ratio, which is higher than VYM'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. VYM - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.83%, more than VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGK Vanguard FTSE Europe ETF	2.83%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%
VYM Vanguard High Dividend Yield ETF	2.24%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VGK and VYM in my portfolio?

VGK and VYM have a correlation of 0.65, 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 VYM?

VGK has higher volatility (4.44%) compared to VYM (2.46%). In terms of maximum drawdown, VGK dropped -63.61% vs VYM's -56.98%.

Which ETF is better, VGK or VYM?

On 10-year performance, VYM leads with 11.71% vs 10.03% for VGK. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGK or VYM?

Over the 10-year period, VYM has performed better with a 11.71% return vs 10.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGK or VYM?

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

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

VGK has the higher dividend yield at 2.83%, compared with 2.24% for VYM.

What is the main difference between VGK and VYM?

VGK is categorized as Europe Equities, while VYM is Dividend. VGK tracks FTSE Developed Europe All Cap Index, while VYM tracks FTSE High Dividend Yield Index. Their fees differ too: 0.06% for VGK and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 1.48), 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.