VGK vs VT
Vanguard FTSE Europe ETF vs Vanguard Total World Stock ETF
Quick Verdict
VT delivered stronger 1-year returns. VT offers more diversification with 10,133 holdings.
Side-by-Side Comparison
| Metric | VGK | VT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $30.5B | $78.6B | |
| Dividend Yield | 2.82% | 1.60% | |
| Holdings | 1,251 | 10,133 | |
| YTD Return | +10.77% | +13.98% | |
| 1Y Return | +20.23% | +21.80% | |
| 3Y Return (annualized) | +18.04% | +20.40% | |
| 5Y Return (annualized) | +9.20% | +10.83% | |
| Volatility (annualized) | 18.5% | 16.6% | |
| Max Drawdown | -67.3% | -50.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Jun 24, 2008 |
VGK vs VT Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VGK returned +20.23% while VT returned +21.80%. Year to date, VGK is up 10.77% versus a gain of 13.98% for VT.
Over three years, VGK compounded at +18.04% per year against +20.40% for VT; over five years the annualized figures are +9.20% and +10.83% respectively. Across the full 18-year window we track, VT has the edge at +7.33% annualized vs +3.67%. 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 16.6% for VT. 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 -50.6% for VT. 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VGK charges 0.06% per year while VT charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, VGK currently yields 2.82% against 1.60% for VT.
Holdings Overlap
VGK and VT share 860 holdings out of 9245 unique holdings combined, representing a 8.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGK or VT?
VGK has an expense ratio of 0.06% while VT charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGK or VT?
Over the past year VGK returned +20.23% vs +21.80% for VT, so VT leads on 1-year performance. Over the longest common window we track (18 years), VGK annualized +3.67% vs +7.33% for VT. Past performance does not guarantee future results.
Which is riskier, VGK or VT?
VGK has been the more volatile fund at 18.5% annualized versus 16.6% for VT. Worst drawdown: VGK -67.3% vs VT -50.6%.
Should I hold both VGK and VT?
VGK and VT have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VGK and VT?
VGK and VT share 860 common holdings with a 8.7% weight overlap. Combined, they hold 9245 unique securities.
Which pays a higher dividend, VGK or VT?
VGK yields 2.82% while VT yields 1.60%, so VGK currently pays the higher dividend yield.
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