VGK vs VTI
Vanguard FTSE Europe ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VGK delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VGK | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.5B | $666.9B | |
| Dividend Yield | 2.82% | 1.07% | |
| Holdings | 1,240 | 3,543 | |
| YTD Return | +10.48% | +13.95% | |
| 1Y Return | +21.64% | +21.44% | |
| 3Y Return (annualized) | +18.95% | +21.10% | |
| 5Y Return (annualized) | +9.01% | +11.77% | |
| Volatility (annualized) | 18.5% | 15.3% | |
| Max Drawdown | -67.3% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | May 24, 2001 |
VGK vs VTI Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VGK returned +21.64% while VTI returned +21.44%. Year to date, VGK is up 10.48% versus a gain of 13.95% for VTI.
Over three years, VGK compounded at +18.95% per year against +21.10% for VTI; over five years the annualized figures are +9.01% and +11.77% respectively. Across the full 22-year window we track, VTI has the edge at +8.11% annualized vs +3.65%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VTI 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 2.82% against 1.07% for VTI.
Holdings Overlap
VGK and VTI share 10 holdings out of 3955 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGK or VTI?
VGK has an expense ratio of 0.06% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VTI?
Over the past year VGK returned +21.64% vs +21.44% for VTI, so VGK leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.65% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, VGK or VTI?
VGK has been the more volatile fund at 18.5% annualized versus 15.3% for VTI. Worst drawdown: VGK -67.3% vs VTI -56.6%.
Should I hold both VGK and VTI?
VGK and VTI have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VTI?
VGK and VTI share 10 common holdings with a 0.1% weight overlap. Combined, they hold 3955 unique securities.
Which pays a higher dividend, VGK or VTI?
VGK yields 2.82% while VTI yields 1.07%, so VGK currently pays the higher dividend yield.
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