VGK vs VUG
Vanguard FTSE Europe ETF vs Vanguard Growth ETF
Quick Verdict
VUG has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | VGK | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.0B | $223.2B | |
| Dividend Yield | 2.94% | 0.47% | |
| Holdings | 1,251 | 155 | |
| YTD Return | +11.16% | +9.57% | |
| 1Y Return | +23.18% | +16.51% | |
| 3Y Return (annualized) | +18.17% | +24.05% | |
| 5Y Return (annualized) | +9.29% | +13.00% | |
| Volatility (annualized) | 18.5% | 16.5% | |
| Max Drawdown | -67.3% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Jan 26, 2004 |
VGK vs VUG Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VGK returned +23.18% while VUG returned +16.51%. Year to date, VGK is up 11.16% versus a gain of 9.57% for VUG.
Over three years, VGK compounded at +18.17% per year against +24.05% for VUG; over five years the annualized figures are +9.29% and +13.00% respectively. Across the full 21-year window we track, VUG has the edge at +11.25% annualized vs +3.69%. 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 16.5% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 2.94% against 0.47% for VUG.
Holdings Overlap
VGK and VUG share 0 holdings out of 1104 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 VUG?
VGK has an expense ratio of 0.06% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VUG?
Over the past year VGK returned +23.18% vs +16.51% for VUG, so VGK leads on 1-year performance. Over the longest common window we track (21 years), VGK annualized +3.69% vs +11.25% for VUG. Past performance does not guarantee future results.
Which is riskier, VGK or VUG?
VGK has been the more volatile fund at 18.5% annualized versus 16.5% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VUG?
VGK and VUG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1104 unique securities.
Which pays a higher dividend, VGK or VUG?
VGK yields 2.94% while VUG yields 0.47%, so VGK currently pays the higher dividend yield.
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