VGK vs VTEB
Vanguard FTSE Europe ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VGK delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VGK | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.0B | $46.0B | |
| Dividend Yield | 2.94% | 3.34% | |
| Holdings | 1,251 | 9,952 | |
| YTD Return | +11.11% | +0.51% | |
| 1Y Return | +23.13% | +4.96% | |
| 3Y Return (annualized) | +18.04% | +3.17% | |
| 5Y Return (annualized) | +9.43% | +0.57% | |
| Volatility (annualized) | 18.5% | 4.9% | |
| Max Drawdown | -67.3% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 4, 2005 | Aug 21, 2015 |
VGK vs VTEB Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VGK returned +23.13% while VTEB returned +4.96%. Year to date, VGK is up 11.11% versus a gain of 0.51% for VTEB.
Over three years, VGK compounded at +18.04% per year against +3.17% for VTEB; over five years the annualized figures are +9.43% and +0.57% respectively. Across the full 11-year window we track, VGK has the edge at +3.69% annualized vs +1.26%. 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 4.9% for VTEB. 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 -17.0% for VTEB. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGK charges 0.06% per year while VTEB 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 3.34% for VTEB.
Holdings Overlap
VGK and VTEB share 0 holdings out of 4491 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 VTEB?
VGK has an expense ratio of 0.06% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VTEB?
Over the past year VGK returned +23.13% vs +4.96% for VTEB, so VGK leads on 1-year performance. Over the longest common window we track (11 years), VGK annualized +3.69% vs +1.26% for VTEB. Past performance does not guarantee future results.
Which is riskier, VGK or VTEB?
VGK has been the more volatile fund at 18.5% annualized versus 4.9% for VTEB. Worst drawdown: VGK -67.3% vs VTEB -17.0%.
Should I hold both VGK and VTEB?
VGK and VTEB have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VTEB?
VGK and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4491 unique securities.
Which pays a higher dividend, VGK or VTEB?
VGK yields 2.94% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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