VGK vs VGSH
Vanguard FTSE Europe ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VGK | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.0B | $29.4B | |
| Dividend Yield | 2.94% | 3.87% | |
| Holdings | 1,251 | 94 | |
| YTD Return | +11.10% | +0.71% | |
| 1Y Return | +21.87% | +2.54% | |
| 3Y Return (annualized) | +18.13% | +4.26% | |
| 5Y Return (annualized) | +9.29% | +1.88% | |
| Volatility (annualized) | 18.5% | 1.4% | |
| Max Drawdown | -67.3% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 4, 2005 | Nov 19, 2009 |
VGK vs VGSH Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VGK returned +21.87% while VGSH returned +2.54%. Year to date, VGK is up 11.10% versus a gain of 0.71% for VGSH.
Over three years, VGK compounded at +18.13% per year against +4.26% for VGSH; over five years the annualized figures are +9.29% and +1.88% respectively. Across the full 17-year window we track, VGK has the edge at +3.69% annualized vs +0.71%. 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 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 -67.3% for VGK and -6.7% for VGSH. 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.94% against 3.87% for VGSH.
Holdings Overlap
VGK and VGSH share 0 holdings out of 1034 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, VGK or VGSH?
VGK has an expense ratio of 0.06% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VGSH?
Over the past year VGK returned +21.87% vs +2.54% for VGSH, so VGK leads on 1-year performance. Over the longest common window we track (17 years), VGK annualized +3.69% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, VGK or VGSH?
VGK has been the more volatile fund at 18.5% annualized versus 1.4% for VGSH. Worst drawdown: VGK -67.3% vs VGSH -6.7%.
Should I hold both VGK and VGSH?
VGK and VGSH have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VGSH?
VGK and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1034 unique securities.
Which pays a higher dividend, VGK or VGSH?
VGK yields 2.94% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.
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