VEU vs VGK
Vanguard FTSE All World Ex US ETF vs Vanguard FTSE Europe ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VEU | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.06% | |
| AUM | $68.4B | $30.5B | |
| Dividend Yield | 2.55% | 2.82% | |
| Holdings | 3,928 | 1,240 | |
| YTD Return | +14.68% | +9.54% | |
| 1Y Return | +27.15% | +21.11% | |
| 3Y Return (annualized) | +20.22% | +18.63% | |
| 5Y Return (annualized) | +9.14% | +8.75% | |
| Volatility (annualized) | 17.7% | 18.5% | |
| Max Drawdown | -62.8% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2007 | Mar 4, 2005 |
VEU vs VGK Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year VEU returned +27.15% while VGK returned +21.11%. Year to date, VEU is up 14.68% versus a gain of 9.54% for VGK.
Over three years, VEU compounded at +20.22% per year against +18.63% for VGK; over five years the annualized figures are +9.14% and +8.75% respectively. Across the full 20-year window we track, VGK has the edge at +3.61% annualized vs +3.55%. 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 17.7% for VEU. 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 -62.8% for VEU 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VEU charges 0.04% per year while VGK charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, VEU currently yields 2.55% against 2.82% for VGK.
Holdings Overlap
VEU and VGK share 468 holdings out of 4368 unique holdings combined, representing a 32.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VGK?
VEU has an expense ratio of 0.04% while VGK charges 0.06%. VEU is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VEU or VGK?
Over the past year VEU returned +27.15% vs +21.11% for VGK, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.55% vs +3.61% for VGK. Past performance does not guarantee future results.
Which is riskier, VEU or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs VGK -67.3%.
Should I hold both VEU and VGK?
VEU and VGK have a monthly-return correlation of 0.96, 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 VEU and VGK?
VEU and VGK share 468 common holdings with a 32.4% weight overlap. Combined, they hold 4368 unique securities.
Which pays a higher dividend, VEU or VGK?
VEU yields 2.55% while VGK yields 2.82%, so VGK currently pays the higher dividend yield.
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