VGIT vs VGK
VGIT vs VGK
Vanguard Intermediate Term Treasury ETF vs Vanguard FTSE Europe ETF
Quick Verdict
VGIT has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VGIT | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $42.1B | $30.0B | |
| Dividend Yield | 3.84% | 2.94% | |
| Holdings | 106 | 1,251 | |
| YTD Return | -0.62% | +11.52% | |
| 1Y Return | +1.32% | +23.34% | |
| 3Y Return (annualized) | +3.60% | +18.09% | |
| 5Y Return (annualized) | -0.12% | +9.58% | |
| Volatility (annualized) | 4.3% | 18.5% | |
| Max Drawdown | -17.2% | -67.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Mar 4, 2005 |
VGIT vs VGK Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year VGIT returned +1.32% while VGK returned +23.34%. Year to date, VGIT is down 0.62% versus a gain of 11.52% for VGK.
Over three years, VGIT compounded at +3.60% per year against +18.09% for VGK; over five years the annualized figures are -0.12% and +9.58% respectively. Across the full 17-year window we track, VGK has the edge at +3.71% annualized vs +0.75%. 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 4.3% for VGIT. 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 -17.2% for VGIT 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGIT 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, VGIT currently yields 3.84% against 2.94% for VGK.
Holdings Overlap
VGIT and VGK share 0 holdings out of 1042 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGIT or VGK?
VGIT has an expense ratio of 0.03% while VGK charges 0.06%. VGIT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGIT or VGK?
Over the past year VGIT returned +1.32% vs +23.34% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.75% vs +3.71% for VGK. Past performance does not guarantee future results.
Which is riskier, VGIT or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VGK -67.3%.
Should I hold both VGIT and VGK?
VGIT and VGK have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VGK?
VGIT and VGK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1042 unique securities.
Which pays a higher dividend, VGIT or VGK?
VGIT yields 3.84% while VGK yields 2.94%, so VGIT currently pays the higher dividend yield.
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