Average Daily Volume
5.26M
Fund Overview
The Vanguard FTSE Europe ETF (VGK) is designed to provide investors with broad exposure to European equities. The fund tracks the FTSE Developed Europe All Cap Index, which includes large-, mid-, and small-cap stocks across developed European markets. VGK offers diversified access to companies in countries such as the UK, France, Germany, Switzerland, and others, covering sectors like financials, healthcare, consumer goods, and industrials. With a low expense ratio, VGK is a cost-effective way to gain international diversification within a portfolio. The ETF is passively managed, aiming to replicate the performance of its benchmark index while minimizing tracking error.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
3 %
- Dividend Date
-
Why Invest in the VGK ETF?
Potential Benefits
- Diversified exposure to developed European markets, reducing single-country risk.
- Low expense ratio compared to actively managed European equity funds.
- Includes large-, mid-, and small-cap stocks for comprehensive market coverage.
- Passive management strategy minimizes costs and tracking error.
- Liquidity and ease of trading due to high assets under management (AUM).
- Potential for long-term growth tied to Europe's economic recovery and corporate earnings.
Potential Risks
- Exposure to currency fluctuations, as European equities are denominated in euros, pounds, and other local currencies.
- Political and economic risks, including Brexit fallout, EU regulatory changes, and sovereign debt concerns.
- Sector concentration in financials and industrials, which may underperform in certain market conditions.
- Market volatility due to geopolitical tensions or economic slowdowns in Europe.
- Lower growth potential compared to emerging markets or U.S. equities in certain cycles.
- Dividend withholding taxes in some European countries may reduce net returns.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+4.7%
|
+3.1%
|
-8.1%
|
+5.7%
|
+2.1%
|
+0.8%
|
+2.3%
|
+1.2%
|
-5.1%
|
-0.3%
|
-
|
-
|
| 2025 |
+6.3%
|
+4.0%
|
+0.4%
|
+3.8%
|
+5.3%
|
+2.5%
|
-2.4%
|
+3.8%
|
+1.9%
|
+0.6%
|
+1.5%
|
+3.5%
|
| 2024 |
-1.2%
|
+2.4%
|
+3.8%
|
-2.6%
|
+6.4%
|
-2.9%
|
+2.5%
|
+3.6%
|
+0.5%
|
-5.5%
|
-1.8%
|
-2.7%
|
| 2023 |
+9.6%
|
-1.7%
|
+2.5%
|
+4.1%
|
-5.1%
|
+4.3%
|
+2.9%
|
-4.0%
|
-4.5%
|
-3.1%
|
+9.8%
|
+5.4%
|
| 2022 |
-3.6%
|
-5.3%
|
+0.2%
|
-6.2%
|
+2.4%
|
-9.9%
|
+5.0%
|
-7.5%
|
-9.7%
|
+8.4%
|
+13.5%
|
-1.7%
|
| 2021 |
-0.9%
|
+2.6%
|
+3.3%
|
+4.8%
|
+4.5%
|
-1.4%
|
+1.9%
|
+1.8%
|
-5.4%
|
+5.0%
|
-4.9%
|
+5.2%
|
| 2020 |
-3.1%
|
-8.0%
|
-16.7%
|
+6.4%
|
+5.8%
|
+3.9%
|
+3.7%
|
+4.3%
|
-3.1%
|
-5.4%
|
+16.4%
|
+5.0%
|
| 2019 |
+6.7%
|
+3.2%
|
+0.8%
|
+3.9%
|
-5.7%
|
+6.4%
|
-2.6%
|
-1.6%
|
+2.6%
|
+3.8%
|
+1.3%
|
+4.5%
|
| 2018 |
+5.6%
|
-6.1%
|
-0.4%
|
+2.1%
|
-2.4%
|
-1.3%
|
+3.4%
|
-2.8%
|
+0.1%
|
-7.9%
|
-0.7%
|
-4.8%
|
| 2017 |
+3.0%
|
+0.6%
|
+4.4%
|
+3.9%
|
+4.9%
|
-0.5%
|
+2.8%
|
+0.1%
|
+3.2%
|
+0.5%
|
-0.1%
|
+1.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
CRH
|
CRH PLC |
0.5 % |
|
RACE
|
FERRARI NV |
0.4 % |
|
FLUT
|
FLUTTER ENTERTAINMENT PLC |
0.4 % |
|
ALC
|
ALCON INC |
0.4 % |
|
SW
|
SMURFIT WESTROCK PLC |
0.2 % |
|
TEF
|
TELEFONICA SA |
0.2 % |
|
QGEN
|
QIAGEN NV |
0.1 % |
|
FRO
|
FRONTLINE PLC |
0.0 % |
|
GOGL
|
GOLDEN OCEAN GROUP LTD |
0.0 % |
Top 10 holdings shown, out of 1 total holdings.
Related ETFs: VGK vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VGK tracks the FTSE Developed Europe All Cap Index, which includes stocks from developed European markets, covering large-, mid-, and small-cap companies. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund holds physical securities (common stocks) rather than using derivatives, ensuring direct exposure to the underlying assets. VGK is rebalanced quarterly to align with index changes, maintaining accurate representation of the European equity market. The passive management approach aims to minimize costs and tracking error while providing broad diversification.
Frequently Asked Questions
Does VGK include UK stocks after Brexit?
Yes, VGK continues to include UK stocks as part of its FTSE Developed Europe All Cap Index, which considers the UK a developed European market.
How often does VGK pay dividends?
VGK distributes dividends quarterly, derived from the underlying stocks in its portfolio.
Is VGK hedged against currency risk?
No, VGK provides unhedged exposure, meaning returns are affected by fluctuations in the euro, pound, and other European currencies relative to the U.S. dollar.
What percentage of VGK is invested in financial stocks?
As of the latest data, financials make up approximately 20-25% of VGK's portfolio, reflecting the sector's prominence in European markets.
Can VGK be held in a tax-advantaged account like an IRA?
Yes, VGK can be held in IRAs or other tax-advantaged accounts, though foreign dividend taxes may still apply depending on the account type.
Industry Overview
The Vanguard FTSE Europe ETF (VGK) provides exposure to the developed European equity market, which includes some of the world's largest and most stable economies. Investing in European equities can offer diversification benefits, as these markets often perform differently from U.S. stocks due to varying economic cycles, monetary policies, and sector compositions. Europe is home to globally dominant companies in industries like luxury goods, pharmaceuticals, and automotive manufacturing. However, investors should be mindful of regional risks, including slower GDP growth compared to emerging markets and political uncertainties. VGK is a popular choice for those seeking broad, low-cost exposure to this region.
Alternative Comparison
Compared to IEUR (iShares Core MSCI Europe ETF), VGK offers slightly broader exposure by including small-cap stocks, whereas IEUR focuses on large- and mid-cap companies. Both have low expense ratios, but VGK's is marginally lower. FEZ (SPDR EURO STOXX 50 ETF) is more concentrated, tracking only 50 blue-chip Eurozone stocks, making it less diversified than VGK. HEDJ (WisdomTree Europe Hedged Equity ETF) includes a currency hedge, which may appeal to investors concerned about euro depreciation, unlike VGK, which has unhedged exposure.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. Founded by John C. Bogle, Vanguard pioneered passive investing and remains a leader in providing cost-efficient, transparent investment products. The firm's client-owned structure allows it to operate at cost, passing savings on to investors through low expense ratios. Vanguard's ETFs are widely trusted for their reliability, liquidity, and adherence to index-tracking strategies.
Conclusion
The Vanguard FTSE Europe ETF (VGK) is a well-established, low-cost option for investors seeking diversified exposure to developed European equities. Its broad market coverage, passive management strategy, and strong liquidity make it a core holding for international portfolios. While European markets carry unique risks, including currency fluctuations and political uncertainties, VGK provides a transparent and efficient way to access this region's growth potential.
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