VGK vs VTIP
Vanguard FTSE Europe ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, VGK or VTIP?
VGK has been ahead.
VTIP has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VGK | VTIP |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $38.5B | $19.8B |
| Dividend Yield | 2.81% | 4.16% |
| Holdings | 1,240 | 25 |
| YTD Return | +6.23%Best | +1.13% |
| 1Y Return | +14.06%Best | +1.38% |
| 3Y Return (annualized) | +17.50%Best | +5.10% |
| 5Y Return (annualized) | +9.32%Best | +3.13% |
| Volatility (annualized) | 16.1% | 2.4%Best |
| Max Drawdown | -41.6% | -7.1%Best |
| $10,000 over 5 years | $15,613Best | $11,666 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | - |
| Inception | Mar 4, 2005 | Oct 12, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 18, 2026 (13.9 years).
VGK vs VTIP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.9 years both funds cover.
VGK vs VTIP Performance
Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an ETF from Vanguard (US). Over the past year VGK returned +14.06% while VTIP returned +1.38%. Year to date, VGK is up 6.23% versus a gain of 1.13% for VTIP.
Over three years, VGK compounded at +17.50% per year against +5.10% for VTIP; over five years the annualized figures are +9.32% and +3.13% respectively. Across the full 14-year window we track, VGK has the edge at +5.98% annualized vs +1.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -41.6% for VGK and -7.1% for VTIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
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 2.81% against 4.16% for VTIP.
Holdings Overlap
At least 0.7% of VGK's money is in holdings VTIP also owns.
Stated as a floor: for VTIP, our book for it covers 89.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,101 positions we hold weights for in VGK and 24 in VTIP, against full books of 1,240 and 25.
Top Shared Holdings
| Stock | Weight in VGK | Weight in VTIP | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.71% | 2.68% | 1.97% |
You are not choosing between two funds in isolation.
Whichever of VGK and VTIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $3 a year on a $10,000 investment.
Which performed better, VGK or VTIP?
Over the past year VGK returned +14.06% vs +1.38% for VTIP, so VGK leads on 1-year performance. Over the longest common window we track (14 years), VGK annualized +5.98% vs +1.51% for VTIP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or VTIP?
VGK has been the more volatile fund at 16.1% annualized versus 2.4% for VTIP. Worst drawdown: VGK -41.6% vs VTIP -7.1%.
Should I hold both VGK and VTIP?
VGK and VTIP have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGK or VTIP?
VGK yields 2.81% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
Is VTIP better than VGK?
VTIP has a lower expense ratio. VGK led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.