VGK vs VO
Vanguard FTSE Europe ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VO has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 1,251 holdings.
Side-by-Side Comparison
| Metric | VGK | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.0B | $105.9B | |
| Dividend Yield | 2.94% | 1.53% | |
| Holdings | 1,251 | 293 | |
| YTD Return | +11.25% | +15.95% | |
| 1Y Return | +21.15% | +18.52% | |
| 3Y Return (annualized) | +18.16% | +16.94% | |
| 5Y Return (annualized) | +9.15% | +8.30% | |
| Volatility (annualized) | 18.5% | 16.9% | |
| Max Drawdown | -67.3% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Jan 26, 2004 |
VGK vs VO Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VGK returned +21.15% while VO returned +18.52%. Year to date, VGK is up 11.25% versus a gain of 15.95% for VO.
Over three years, VGK compounded at +18.16% per year against +16.94% for VO; over five years the annualized figures are +9.15% and +8.30% respectively. Across the full 21-year window we track, VO has the edge at +9.30% 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 16.9% 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 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 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 2.94% against 1.53% for VO.
Holdings Overlap
VGK and VO share 3 holdings out of 1234 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VO?
Over the past year VGK returned +21.15% vs +18.52% for VO, so VGK leads on 1-year performance. Over the longest common window we track (21 years), VGK annualized +3.69% vs +9.30% for VO. Past performance does not guarantee future results.
Which is riskier, VGK or VO?
VGK has been the more volatile fund at 18.5% annualized versus 16.9% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VO?
VGK and VO share 3 common holdings with a 0.8% weight overlap. Combined, they hold 1234 unique securities.
Which pays a higher dividend, VGK or VO?
VGK yields 2.94% while VO yields 1.53%, so VGK currently pays the higher dividend yield.
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