VEA vs VGK
Vanguard FTSE Developed Markets ETF vs Vanguard FTSE Europe ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3,918 holdings.
Side-by-Side Comparison
| Metric | VEA | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $230.3B | $30.5B | |
| Dividend Yield | 2.55% | 2.82% | |
| Holdings | 3,918 | 1,251 | |
| YTD Return | +16.41% | +10.77% | |
| 1Y Return | +27.39% | +20.23% | |
| 3Y Return (annualized) | +20.46% | +18.04% | |
| 5Y Return (annualized) | +10.23% | +9.20% | |
| Volatility (annualized) | 17.8% | 18.5% | |
| Max Drawdown | -62.9% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Mar 4, 2005 |
VEA vs VGK Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year VEA returned +27.39% while VGK returned +20.23%. Year to date, VEA is up 16.41% versus a gain of 10.77% for VGK.
Over three years, VEA compounded at +20.46% per year against +18.04% for VGK; over five years the annualized figures are +10.23% and +9.20% respectively. Across the full 19-year window we track, VGK has the edge at +3.67% annualized vs +3.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 17.8% for VEA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -62.9% for VEA and -67.3% for VGK. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VEA charges 0.03% per year while VGK charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VEA currently yields 2.55% against 2.82% for VGK.
Holdings Overlap
VEA and VGK share 1088 holdings out of 3833 unique holdings combined, representing a 41.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VGK?
VEA has an expense ratio of 0.03% while VGK charges 0.06%. VEA is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VEA or VGK?
Over the past year VEA returned +27.39% vs +20.23% for VGK, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.14% vs +3.67% for VGK. Past performance does not guarantee future results.
Which is riskier, VEA or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 17.8% for VEA. Worst drawdown: VEA -62.9% vs VGK -67.3%.
Should I hold both VEA and VGK?
VEA and VGK have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VEA and VGK?
VEA and VGK share 1088 common holdings with a 41.4% weight overlap. Combined, they hold 3833 unique securities.
Which pays a higher dividend, VEA or VGK?
VEA yields 2.55% while VGK yields 2.82%, so VGK currently pays the higher dividend yield.
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