VGK vs VUG

VGK vs VUG

Which is better, VGK or VUG?

Large Cap Blend against Large Cap Growth.

VUG has a lower expense ratio. VGK led over 1Y, VUG over 3Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 63.6%.

Lower Fees: VUGHigher Returns: splitLess Concentrated: VGK

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

MetricVGKVUG
Expense Ratio0.06%0.03%Best
AUM$38.5B$219.5B
Dividend Yield2.81%0.38%
Holdings1,240146
YTD Return+6.23%+9.77%Best
1Y Return+14.06%Best+12.34%
3Y Return (annualized)+17.50%+24.08%Best
5Y Return (annualized)+9.32%+13.00%Best
Volatility (annualized)18.5%16.8%Best
Max Drawdown-67.3%-51.4%Best
$10,000 over 5 years$15,613$18,424Best
Top 10 Weight18.4%Best63.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionMar 4, 2005Jan 26, 2004

Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 18, 2026 (21.5 years).

VGK vs VUG 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 21.5 years both funds cover.

VGK vs VUG Performance

Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US). Over the past year VGK returned +14.06% while VUG returned +12.34%. Year to date, VGK is up 6.23% versus a gain of 9.77% for VUG.

Over three years, VGK compounded at +17.50% per year against +24.08% for VUG; over five years the annualized figures are +9.32% and +13.00% respectively. Across the full 22-year window we track, VUG has the edge at +11.71% annualized vs +3.45%.

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 16.8% for VUG. 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 -51.4% for VUG. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VGK charges 0.06% per year while VUG 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 0.38% for VUG.

Holdings Overlap

VGK already in VUG0.9%
VUG already in VGK0.2%

0.9% of VGK's money is in holdings VUG also owns. 0.2% of VUG's money is in holdings VGK also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 1,101 positions we hold weights for in VGK and 147 in VUG, against full books of 1,240 and 146.

What only one of them owns

Our book lists 144 positions for VUG that do not appear in our book for VGK (99.5% of the fund), and 11 for VGK that do not appear in VUG (2.4%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in VGKWeight in VUGDifference
CURVVanguard Market Liquidity Fund0.71%0.15%0.56%
SUNBSunbelt Rentals0.18%0.06%0.12%

You are not choosing between two funds in isolation.

Whichever of VGK and VUG you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VGKVUG

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VGK or VUG?

VGK has an expense ratio of 0.06% while VUG charges 0.03%. VUG is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, VGK or VUG?

Over the past year VGK returned +14.06% vs +12.34% for VUG, so VGK leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.45% vs +11.71% for VUG. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VGK or VUG?

VGK has been the more volatile fund at 18.5% annualized versus 16.8% for VUG. Worst drawdown: VGK -67.3% vs VUG -51.4%.

Should I hold both VGK and VUG?

VGK and VUG have a monthly-return correlation of 0.77, 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 VUG?

VGK yields 2.81% while VUG yields 0.38%, so VGK currently pays the higher dividend yield.

Is VUG better than VGK?

VUG has a lower expense ratio. VGK led over 1Y, VUG over 3Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.