VO vs. VGK

Last updated Jun 9, 2026

VO (Vanguard Mid-Cap ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, VO returned 11.44%/yr vs 9.63%/yr for VGK. A 0.77 correlation means they provide meaningful diversification when combined. VO charges 0.03%/yr vs 0.06%/yr for VGK.

Performance

VO vs. VGK - Performance Comparison

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

Returns By Period

In the year-to-date period, VO achieves a 8.60% return, which is significantly higher than VGK's 5.17% return. Over the past 10 years, VO has outperformed VGK with an annualized return of 11.44%, while VGK has yielded a comparatively lower 9.63% annualized return.

VO

• 1D: -0.04%
• 1M: 1.75%
• YTD: 8.60%
• 6M: 8.43%
• 1Y: 16.32%
• 3Y*: 15.78%
• 5Y*: 7.59%
• 10Y*: 11.44%

VGK

• 1D: 0.45%
• 1M: -0.68%
• YTD: 5.17%
• 6M: 8.47%
• 1Y: 16.29%
• 3Y*: 16.24%
• 5Y*: 8.08%
• 10Y*: 9.63%

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

VO vs. VGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VO Vanguard Mid-Cap ETF	8.60%	11.62%	15.31%	16.03%	-18.73%	24.70%	18.10%	30.98%	-9.24%	19.28%
VGK Vanguard FTSE Europe ETF	5.17%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between VO and VGK is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.77

The correlation between VO and VGK has been stable across timeframes, ranging from 0.70 to 0.77 - a consistent structural relationship.

VO vs. VGK - Sectors Allocation Comparison

Sectors	VO	VGK
Technology	18.6%	8.2%
Industrials	17.9%	19.3%
Financial Services	12.8%	23.6%
Consumer Cyclical	8.6%	6.8%
Energy	8.5%	5.3%
Utilities	8.3%	4.7%
Healthcare	7.6%	11.9%
Real Estate	5.4%	1.5%
Consumer Defensive	4.8%	8.4%
Basic Materials	4.2%	5.3%
Communication Services	3.1%	3.3%

Return for Risk

VO vs. VGK — Risk / Return Rank

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

VO

VO Risk / Return Rank: 43
VO Sharpe Ratio Rank: 41
VO Sortino Ratio Rank: 41
VO Omega Ratio Rank: 38
VO Calmar Ratio Rank: 45
VO Martin Ratio Rank: 50

VGK

VGK Risk / Return Rank: 32
VGK Sharpe Ratio Rank: 32
VGK Sortino Ratio Rank: 32
VGK Omega Ratio Rank: 31
VGK Calmar Ratio Rank: 30
VGK Martin Ratio Rank: 36

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.

VO vs. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) and Vanguard FTSE Europe ETF (VGK). 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.

	VO	VGK	Difference
Sharpe ratio: Return per unit of total volatility	1.31	1.05	+0.26
Sortino ratio: Return per unit of downside risk	1.89	1.55	+0.34
Omega ratio: Gain probability vs. loss probability	1.23	1.19	+0.04
Calmar ratio: Return relative to maximum drawdown	2.01	1.35	+0.65
Martin ratio: Return relative to average drawdown	7.62	5.01	+2.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VO vs. VGK - Sharpe Ratio Comparison

The current VO Sharpe Ratio is 1.31, which is comparable to the VGK Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of VO and VGK, 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

	VO	VGK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.31	1.05	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.45	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.51	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.28	+0.22

Drawdowns

VO vs. VGK - Drawdown Comparison

The maximum VO drawdown since its inception was -58.87%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for VO and VGK.

Drawdown Indicators

	VO	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-58.87%	-63.61%	+4.74%
Max Drawdown (1Y) Largest decline over 1 year	-8.17%	-12.09%	+3.92%
Max Drawdown (3Y) Largest decline over 3 years	-19.02%	-14.31%	-4.71%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-32.74%	+5.17%
Max Drawdown (10Y) Largest decline over 10 years	-39.37%	-37.24%	-2.13%
Current Drawdown Current decline from peak	-2.10%	-2.83%	+0.73%
Average Drawdown Average peak-to-trough decline	-7.86%	-13.34%	+5.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	3.26%	-1.11%

Volatility

VO vs. VGK - Volatility Comparison

The current volatility for Vanguard Mid-Cap ETF (VO) is 3.51%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 4.86%. This indicates that VO experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VO	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.51%	4.86%	-1.35%
Volatility (6M) Calculated over the trailing 6-month period	9.46%	12.97%	-3.51%
Volatility (1Y) Calculated over the trailing 1-year period	12.51%	15.57%	-3.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.62%	17.92%	-0.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.96%	18.97%	-0.01%

VO vs. VGK - Expense Ratio Comparison

VO has a 0.03% expense ratio, which is lower than VGK's 0.06% 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

VO vs. VGK - Dividend Comparison

VO's dividend yield for the trailing twelve months is around 1.38%, less than VGK's 2.83% 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%
VO Vanguard Mid-Cap ETF	1.38%	1.52%	1.49%	1.52%	1.60%	1.12%	1.45%	1.48%	1.82%	1.35%	1.45%	1.47%

Frequently Asked Questions

Can I hold both VO and VGK in my portfolio?

VO and VGK have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VO or VGK?

VGK has higher volatility (4.86%) compared to VO (3.51%). In terms of maximum drawdown, VO dropped -58.87% vs VGK's -63.61%.

Which ETF is better, VO or VGK?

On 10-year performance, VO leads with 11.44% vs 9.63% for VGK. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 3.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VO or VGK?

Over the 10-year period, VO has performed better with a 11.44% return vs 9.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VO or VGK?

VO is cheaper with a 0.03% expense ratio, compared with 0.06% for VGK.

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

VGK has the higher dividend yield at 2.83%, compared with 1.38% for VO.

What is the main difference between VO and VGK?

VO is categorized as Mid Cap Blend Equities, while VGK is Europe Equities. VO tracks CRSP US Mid Cap Index, while VGK tracks FTSE Developed Europe All Cap Index. Their fees differ too: 0.03% for VO and 0.06% for VGK.

Which has better risk-adjusted returns?

VO currently has the higher Sharpe Ratio (1.31 vs 1.05), 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.