VGK vs VMLUX
Vanguard FTSE Europe ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VGK has a lower expense ratio. VGK delivered stronger 1-year returns. VMLUX offers more diversification with 7,398 holdings.
Side-by-Side Comparison
| Metric | VGK | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $30.5B | $34.5B | |
| Dividend Yield | 2.82% | 2.93% | |
| Holdings | 1,240 | 7,398 | |
| YTD Return | +9.25% | -0.82% | |
| 1Y Return | +20.79% | -0.55% | |
| 3Y Return (annualized) | +18.54% | +0.78% | |
| 5Y Return (annualized) | +8.80% | -0.58% | |
| Volatility (annualized) | 18.5% | 2.8% | |
| Max Drawdown | -67.3% | -8.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 4, 2005 | Feb 12, 2001 |
VGK vs VMLUX Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VGK returned +20.79% while VMLUX returned -0.55%. Year to date, VGK is up 9.25% versus a loss of 0.82% for VMLUX.
Over three years, VGK compounded at +18.54% per year against +0.78% for VMLUX; over five years the annualized figures are +8.80% and -0.58% respectively. Across the full 5-year window we track, VGK has the edge at +3.60% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.4% for VMLUX. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGK charges 0.06% per year while VMLUX charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, VGK currently yields 2.82% against 2.93% for VMLUX.
Holdings Overlap
VGK and VMLUX share 0 holdings out of 2093 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 VMLUX?
VGK has an expense ratio of 0.06% while VMLUX charges 0.09%. VGK is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VMLUX?
Over the past year VGK returned +20.79% vs -0.55% for VMLUX, so VGK leads on 1-year performance. Over the longest common window we track (5 years), VGK annualized +3.60% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VGK or VMLUX?
VGK has been the more volatile fund at 18.5% annualized versus 2.8% for VMLUX. Worst drawdown: VGK -67.3% vs VMLUX -8.4%.
Should I hold both VGK and VMLUX?
VGK and VMLUX have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VMLUX?
VGK and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2093 unique securities.
Which pays a higher dividend, VGK or VMLUX?
VGK yields 2.82% while VMLUX yields 2.93%, so VMLUX currently pays the higher dividend yield.
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