VGK vs VO
Vanguard FTSE Europe ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, VGK or VO?
Large Cap Blend against Mid Cap Blend.
VO has a lower expense ratio. VGK led over 1Y, 3Y and 5Y, VO over the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 18.4%.
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 | VO |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $38.5B | $106.6B |
| Dividend Yield | 2.81% | 1.30% |
| Holdings | 1,240 | 289 |
| YTD Return | +6.74% | +10.10%Best |
| 1Y Return | +16.60%Best | +12.19% |
| 3Y Return (annualized) | +19.04%Best | +17.40% |
| 5Y Return (annualized) | +8.99%Best | +7.13% |
| Volatility (annualized) | 18.5% | 17.1%Best |
| Max Drawdown | -67.3% | -60.3%Best |
| $10,000 over 5 years | $15,379Best | $14,111 |
| Top 10 Weight | 18.4% | 9.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Mar 4, 2005 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 25, 2026 (21.5 years).
VGK vs VO 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 21.5 years both funds cover.
VGK vs VO Performance
Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year VGK returned +16.60% while VO returned +12.19%. Year to date, VGK is up 6.74% versus a gain of 10.10% for VO.
Over three years, VGK compounded at +19.04% per year against +17.40% for VO; over five years the annualized figures are +8.99% and +7.13% respectively. Across the full 22-year window we track, VO has the edge at +8.67% annualized vs +3.47%.
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 17.1% for VO. 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 -60.3% for VO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VO 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 1.30% for VO.
Holdings Overlap
1.0% of VGK's money is in holdings VO also owns. 0.9% of VO's money is in holdings VGK also owns.
VGK and VO share little of their money.
3 positions in common, counted across the 1,101 positions we hold weights for in VGK and 283 in VO, against full books of 1,240 and 289.
What only one of them owns
Our book lists 272 positions for VO that do not appear in our book for VGK (96.1% of the fund), and 10 for VGK that do not appear in VO (2.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VGK and VO 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 VO?
VGK has an expense ratio of 0.06% while VO charges 0.03%. VO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VGK or VO?
Over the past year VGK returned +16.60% vs +12.19% for VO, so VGK leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.47% vs +8.67% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or VO?
VGK has been the more volatile fund at 18.5% annualized versus 17.1% for VO. Worst drawdown: VGK -67.3% vs VO -60.3%.
Should I hold both VGK and VO?
VGK and VO have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VGK and VO?
1.0% of VGK's money is in holdings VO also owns. 0.9% of VO's is in holdings VGK also owns. They hold 3 positions in common, counted across the 1,101 positions we hold weights for in VGK and 283 in VO.
Which pays a higher dividend, VGK or VO?
VGK yields 2.81% while VO yields 1.30%, so VGK currently pays the higher dividend yield.
Is VO better than VGK?
VO has a lower expense ratio. VGK led over 1Y, 3Y and 5Y, VO over the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 18.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.