Vanguard FTSE Europe ETF

Vanguard FTSE Europe ETF (VGK) is an index fund tracking the FTSE Developed Europe All Cap Index. It holds more than 1,200 large, mid-size and small companies across developed Europe, led by ASML, HSBC and Roche. Its annual expense ratio of 0.06% is the lowest among similar Europe funds, which average 0.28%. It is also the largest of them, with $38.5 billion in net assets across all share classes as of July 31, 2026.

• Over the year to Oct 30, 2026, VGK returned +11.9%, 1st of 7 among similar funds.
• Its 5-year annualized return was +8.4%.
• Its worst full calendar year was 2022 (-16.0%); its best was 2025 (+35.9%).
• The deepest fall in its price history was 32.7% (Sep 2, 2021 to Sep 27, 2022), recovered by Feb 22, 2024.

As of Jul 31, 2026, the fund held 1,231 securities; the ten largest made up 18.54% of assets.

• Over the three months to Jul 31, 2026, investors withdrew a net $675.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.10%, +0.60%, +2.36%.

VGK is the exchange-traded share class of Vanguard European Stock Index Fund. It tracks the FTSE Developed Europe All Cap Index, which includes large, mid-size and small companies across developed Europe. The index is weighted by market capitalization, the total value of a company's shares, so the biggest companies carry the most weight. As of July 31, 2026, ASML made up 3.95% of the fund, followed by HSBC at 2.27% and Roche at 1.91%. The UK was the largest country, at 22.99%.

Vanguard uses replication, meaning the fund generally holds the same stocks as the index in about the same proportions. Under normal conditions it keeps at least 80% of net assets in index stocks. Because weights follow market values, the fund doesn't need to trade just because prices move. Changes come mainly when the index adds or drops companies. Portfolio turnover, the share of holdings replaced over a year, was 5%. It also holds a little cash (0.76% as of July 31, 2026) and tiny futures and currency-forward positions.

Its stocks are priced in pounds, euros, Swiss francs and other currencies, so a stronger dollar can shrink returns for US holders and a weaker one can add to them. VGK shares trade on NYSE Arca at market prices, which can differ slightly from the value of the holdings.

• VGK charges 0.06% a year, versus an average of 0.28% for the similar funds below (1st of 7, cheapest first).
• Of that, 0.04% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $6 in the first year and $77 over 10 years (assuming a 5% annual return).

It adds European stocks and currencies that don't always move with US markets, but as an all-stock, single-region fund it complements a core holding rather than replacing one.

VGK can add more than 1,200 European companies, such as ASML, HSBC and Nestle, to a US-heavy portfolio at an annual cost of 0.06%. Its quarterly dividends added up to a 2.96% yield over the 12 months to October 27, 2026. It has also fallen hard. It lost 25.66% in the first quarter of 2020 and 16.04% in 2022, its worst calendar year from 2018 through 2025. Our price history starts in June 2020, so it doesn't cover the 2008 financial crisis. Within that history, the deepest drop was about 33%, from September 2021 to September 2022. It took about 17 months from the low to recover.

Retirees who have to sell shares in a year like 2022 lock in losses, so stock funds like this are often paired with cash or bonds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.