VGK vs VIG
Vanguard FTSE Europe ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VIG has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VGK | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $30.0B | $110.2B | |
| Dividend Yield | 2.94% | 1.79% | |
| Holdings | 1,251 | 335 | |
| YTD Return | +11.16% | +12.26% | |
| 1Y Return | +23.18% | +20.77% | |
| 3Y Return (annualized) | +18.17% | +16.59% | |
| 5Y Return (annualized) | +9.29% | +10.76% | |
| Volatility (annualized) | 18.5% | 13.3% | |
| Max Drawdown | -67.3% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Apr 21, 2006 |
VGK vs VIG Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VGK returned +23.18% while VIG returned +20.77%. Year to date, VGK is up 11.16% versus a gain of 12.26% for VIG.
Over three years, VGK compounded at +18.17% per year against +16.59% for VIG; over five years the annualized figures are +9.29% and +10.76% respectively. Across the full 20-year window we track, VIG has the edge at +8.69% annualized vs +3.69%. 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 13.3% for VIG. 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 -48.2% for VIG. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VIG charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VGK currently yields 2.94% against 1.79% for VIG.
Holdings Overlap
VGK and VIG share 1 holdings out of 1288 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VGK | Weight in VIG | Difference |
|---|---|---|---|
| ADM:LN | 0.06% | 0.16% | 0.10% |
Frequently Asked Questions
Which is cheaper, VGK or VIG?
VGK has an expense ratio of 0.06% while VIG charges 0.04%. VIG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VGK or VIG?
Over the past year VGK returned +23.18% vs +20.77% for VIG, so VGK leads on 1-year performance. Over the longest common window we track (20 years), VGK annualized +3.69% vs +8.69% for VIG. Past performance does not guarantee future results.
Which is riskier, VGK or VIG?
VGK has been the more volatile fund at 18.5% annualized versus 13.3% for VIG. Worst drawdown: VGK -67.3% vs VIG -48.2%.
Should I hold both VGK and VIG?
VGK and VIG have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VIG?
VGK and VIG share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1288 unique securities.
Which pays a higher dividend, VGK or VIG?
VGK yields 2.94% while VIG yields 1.79%, so VGK currently pays the higher dividend yield.
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