VGK vs VWO
Vanguard FTSE Europe ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VGK | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $30.5B | $122.0B | |
| Dividend Yield | 2.82% | 2.39% | |
| Holdings | 1,251 | 6,334 | |
| YTD Return | +10.81% | +9.40% | |
| 1Y Return | +19.44% | +19.92% | |
| 3Y Return (annualized) | +18.94% | +18.10% | |
| 5Y Return (annualized) | +9.55% | +7.28% | |
| Volatility (annualized) | 18.5% | 20.1% | |
| Max Drawdown | -67.3% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Mar 4, 2005 |
VGK vs VWO Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VGK returned +19.44% while VWO returned +19.92%. Year to date, VGK is up 10.81% versus a gain of 9.40% for VWO.
Over three years, VGK compounded at +18.94% per year against +18.10% for VWO; over five years the annualized figures are +9.55% and +7.28% respectively. Across the full 21-year window we track, VWO has the edge at +4.94% annualized vs +3.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 18.5% for VGK. 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 -68.3% for VWO. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VWO charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, VGK currently yields 2.82% against 2.39% for VWO.
Holdings Overlap
VGK and VWO share 10 holdings out of 5151 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 VWO?
VGK has an expense ratio of 0.06% while VWO charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGK or VWO?
Over the past year VGK returned +19.44% vs +19.92% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (21 years), VGK annualized +3.67% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, VGK or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 18.5% for VGK. Worst drawdown: VGK -67.3% vs VWO -68.3%.
Should I hold both VGK and VWO?
VGK and VWO have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VWO?
VGK and VWO share 10 common holdings with a 0.1% weight overlap. Combined, they hold 5151 unique securities.
Which pays a higher dividend, VGK or VWO?
VGK yields 2.82% while VWO yields 2.39%, so VGK currently pays the higher dividend yield.
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