VGK vs VNQ
Vanguard FTSE Europe ETF vs Vanguard Real Estate ETF
Which is better, VGK or VNQ?
Large Cap Blend against Mid Cap Blend.
VGK has a lower expense ratio. VGK led over 1Y, 3Y and 5Y, VNQ over the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 49.8%.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.13% |
| AUM | $31.0B | $38.1B |
| Dividend Yield | 2.81% | 3.60% |
| Holdings | 1,250 | 144 |
| YTD Return | +4.29%Best | +3.98% |
| 1Y Return | +10.02%Best | +1.98% |
| 3Y Return (annualized) | +18.96%Best | +11.41% |
| 5Y Return (annualized) | +9.13%Best | +1.04% |
| Volatility (annualized) | 18.5%Best | 21.5% |
| Max Drawdown | -67.3%Best | -75.8% |
| $10,000 over 5 years | $15,478Best | $10,531 |
| Top 10 Weight | 18.4%Best | 49.8% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Mar 4, 2005 | Sep 23, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Oct 2, 2026 (21.6 years).
VGK vs VNQ 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 covers the 21.6 years both funds cover.
VGK vs VNQ Performance
Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VGK returned +10.02% while VNQ returned +1.98%. Year to date, VGK is up 4.29% versus a gain of 3.98% for VNQ.
Over three years, VGK compounded at +18.96% per year against +11.41% for VNQ; over five years the annualized figures are +9.13% and +1.04% respectively. Across the full 22-year window we track, VNQ has the edge at +3.43% annualized vs +3.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 18.5% for VGK. 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 -75.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGK charges 0.06% per year while VNQ charges 0.13%. On a $10,000 position that is $6 vs $13 annually, a gap of $7 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 3.60% for VNQ.
Holdings Overlap
We hold position weights for 1,101 holdings in VGK and 139 in VNQ, totalling 95.3% and 99.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,101 positions we hold weights for in VGK and 139 in VNQ, against full books of 1,250 and 144.
What only one of them owns
Measured across the 1,101 and 139 positions we hold weights for.
VGK holds 12 positions VNQ does not, 3.0% of the fund.
Largest: SHEL 1.44%, CURV 0.71%, BASFY 0.32%, SUNB 0.18%, HBAN 0.13%
You are not choosing between two funds in isolation.
Whichever of VGK and VNQ 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 VNQ?
VGK has an expense ratio of 0.06% while VNQ charges 0.13%. VGK is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, VGK or VNQ?
Over the past year VGK returned +10.02% vs +1.98% for VNQ, so VGK leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.36% vs +3.43% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or VNQ?
VNQ has been the more volatile fund at 21.5% annualized versus 18.5% for VGK. Worst drawdown: VGK -67.3% vs VNQ -75.8%.
Should I hold both VGK and VNQ?
VGK and VNQ have a monthly-return correlation of 0.68, 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 VNQ?
VGK yields 2.81% while VNQ yields 3.60%, so VNQ currently pays the higher dividend yield.
Is VNQ better than VGK?
VGK has a lower expense ratio. VGK led over 1Y, 3Y and 5Y, VNQ over the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 49.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.