VGK vs VTIP
Vanguard FTSE Europe ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VGK | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.0B | $19.3B | |
| Dividend Yield | 2.94% | 3.60% | |
| Holdings | 1,251 | 27 | |
| YTD Return | +11.52% | +1.87% | |
| 1Y Return | +23.34% | +3.01% | |
| 3Y Return (annualized) | +18.09% | +5.37% | |
| 5Y Return (annualized) | +9.58% | +3.39% | |
| Volatility (annualized) | 18.5% | 2.4% | |
| Max Drawdown | -67.3% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 4, 2005 | Oct 12, 2012 |
VGK vs VTIP Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VGK returned +23.34% while VTIP returned +3.01%. Year to date, VGK is up 11.52% versus a gain of 1.87% for VTIP.
Over three years, VGK compounded at +18.09% per year against +5.37% for VTIP; over five years the annualized figures are +9.58% and +3.39% respectively. Across the full 14-year window we track, VGK has the edge at +3.71% annualized vs +1.58%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGK charges 0.06% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
VGK and VTIP share 0 holdings out of 981 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 VTIP?
VGK has an expense ratio of 0.06% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VTIP?
Over the past year VGK returned +23.34% vs +3.01% for VTIP, so VGK leads on 1-year performance. Over the longest common window we track (14 years), VGK annualized +3.71% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VGK or VTIP?
VGK has been the more volatile fund at 18.5% annualized versus 2.4% for VTIP. Worst drawdown: VGK -67.3% vs VTIP -7.1%.
Should I hold both VGK and VTIP?
VGK and VTIP have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VTIP?
VGK and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 981 unique securities.
Which pays a higher dividend, VGK or VTIP?
VGK yields 2.94% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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