VGK vs VXF
Vanguard FTSE Europe ETF vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | VGK | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $30.5B | $30.5B | |
| Dividend Yield | 2.82% | 1.03% | |
| Holdings | 1,251 | 3,376 | |
| YTD Return | +10.81% | +15.71% | |
| 1Y Return | +19.44% | +23.93% | |
| 3Y Return (annualized) | +18.94% | +19.90% | |
| 5Y Return (annualized) | +9.55% | +7.18% | |
| Volatility (annualized) | 18.5% | 18.7% | |
| Max Drawdown | -67.3% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Dec 27, 2001 |
VGK vs VXF Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VGK returned +19.44% while VXF returned +23.93%. Year to date, VGK is up 10.81% versus a gain of 15.71% for VXF.
Over three years, VGK compounded at +18.94% per year against +19.90% for VXF; over five years the annualized figures are +9.55% and +7.18% respectively. Across the full 21-year window we track, VXF has the edge at +9.01% annualized vs +3.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VXF charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VGK currently yields 2.82% against 1.03% for VXF.
Holdings Overlap
VGK and VXF share 9 holdings out of 4462 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGK or VXF?
VGK has an expense ratio of 0.06% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VGK or VXF?
Over the past year VGK returned +19.44% vs +23.93% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (21 years), VGK annualized +3.67% vs +9.01% for VXF. Past performance does not guarantee future results.
Which is riskier, VGK or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 18.5% for VGK. Worst drawdown: VGK -67.3% vs VXF -59.4%.
Should I hold both VGK and VXF?
VGK and VXF have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VXF?
VGK and VXF share 9 common holdings with a 0.5% weight overlap. Combined, they hold 4462 unique securities.
Which pays a higher dividend, VGK or VXF?
VGK yields 2.82% while VXF yields 1.03%, so VGK currently pays the higher dividend yield.
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