VGK vs VYM
Vanguard FTSE Europe ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 1,240 holdings.
Side-by-Side Comparison
| Metric | VGK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $30.5B | $81.6B | |
| Dividend Yield | 2.82% | 2.24% | |
| Holdings | 1,240 | 613 | |
| YTD Return | +10.39% | +14.57% | |
| 1Y Return | +22.04% | +21.08% | |
| 3Y Return (annualized) | +18.42% | +18.16% | |
| 5Y Return (annualized) | +9.18% | +12.00% | |
| Volatility (annualized) | 18.5% | 14.6% | |
| Max Drawdown | -67.3% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Nov 10, 2006 |
VGK vs VYM Performance
Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGK returned +22.04% while VYM returned +21.08%. Year to date, VGK is up 10.39% versus a gain of 14.57% for VYM.
Over three years, VGK compounded at +18.42% per year against +18.16% for VYM; over five years the annualized figures are +9.18% and +12.00% respectively. Across the full 20-year window we track, VYM has the edge at +6.99% annualized vs +3.65%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VGK currently yields 2.82% against 2.24% for VYM.
Holdings Overlap
VGK and VYM share 4 holdings out of 1777 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGK or VYM?
VGK has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VGK or VYM?
Over the past year VGK returned +22.04% vs +21.08% for VYM, so VGK leads on 1-year performance. Over the longest common window we track (20 years), VGK annualized +3.65% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, VGK or VYM?
VGK has been the more volatile fund at 18.5% annualized versus 14.6% for VYM. Worst drawdown: VGK -67.3% vs VYM -58.8%.
Should I hold both VGK and VYM?
VGK and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VYM?
VGK and VYM share 4 common holdings with a 0.2% weight overlap. Combined, they hold 1777 unique securities.
Which pays a higher dividend, VGK or VYM?
VGK yields 2.82% while VYM yields 2.24%, so VGK currently pays the higher dividend yield.
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