VGK vs VGSH
Vanguard FTSE Europe ETF vs Vanguard Short Term Treasury ETF
Which is better, VGK or VGSH?
Large Cap Blend against Short Term Government Bond.
VGSH has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VGK | VGSH |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $38.5B | $34.7B |
| Dividend Yield | 2.81% | 3.82% |
| Holdings | 1,240 | 94 |
| YTD Return | +7.70%Best | +0.57% |
| 1Y Return | +15.70%Best | +1.76% |
| 3Y Return (annualized) | +18.93%Best | +4.14% |
| 5Y Return (annualized) | +9.18%Best | +1.85% |
| Volatility (annualized) | 17.5% | 1.4%Best |
| Max Drawdown | -41.6% | -6.7%Best |
| $10,000 over 5 years | $15,514Best | $10,960 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Short Term Government Bond |
| Inception | Mar 4, 2005 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 22, 2026 (16.8 years).
VGK vs VGSH growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VGK vs VGSH Performance
Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year VGK returned +15.70% while VGSH returned +1.76%. Year to date, VGK is up 7.70% versus a gain of 0.57% for VGSH.
Over three years, VGK compounded at +18.93% per year against +4.14% for VGSH; over five years the annualized figures are +9.18% and +1.85% respectively. Across the full 17-year window we track, VGK has the edge at +4.40% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 1.4% for VGSH. 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 -41.6% for VGK and -6.7% for VGSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.13. They move largely independently of each other.
Fees and Cost Over Time
VGK charges 0.06% per year while VGSH charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 3.82% for VGSH.
Holdings Overlap
At least 0.7% of VGK's money is in holdings VGSH also owns.
Stated as a floor: for VGSH, our book for it covers 76.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,101 positions we hold weights for in VGK and 71 in VGSH, against full books of 1,240 and 94.
Top Shared Holdings
| Stock | Weight in VGK | Weight in VGSH | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.71% | 0.40% | 0.31% |
You are not choosing between two funds in isolation.
Whichever of VGK and VGSH you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VGK or VGSH?
VGK has an expense ratio of 0.06% while VGSH charges 0.03%. VGSH is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VGK or VGSH?
Over the past year VGK returned +15.70% vs +1.76% for VGSH, so VGK leads on 1-year performance. Over the longest common window we track (17 years), VGK annualized +4.40% vs +0.70% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or VGSH?
VGK has been the more volatile fund at 17.5% annualized versus 1.4% for VGSH. Worst drawdown: VGK -41.6% vs VGSH -6.7%.
Should I hold both VGK and VGSH?
VGK and VGSH have a monthly-return correlation of 0.13, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGK or VGSH?
VGK yields 2.81% while VGSH yields 3.82%, so VGSH currently pays the higher dividend yield.
Is VGSH better than VGK?
VGSH has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.