Better Vanguard ETF? Vanguard Pacific (VPL) or Vanguard Europe (VGK)

Amid shifting global markets, Europe battling geopolitical headwinds, the Pacific fueled by Asia’s tech boom and Australia’s stability; investors have a tough choice. Using TipRanks’ Best Country ETFs (exchange-traded funds) we determined two interesting funds that offer lucrative returns.

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The Vanguard FTSE Pacific ETF VPL -2.20% ▼ and the Vanguard FTSE Europe ETF VGK -1.87% ▼ , both offer low-cost access to developed markets outside the U.S., but which delivers higher upside? This analysis compares performance, drivers, valuations, and catalysts.

Vanguard FTSE Pacific ETF VPL -2.20% ▼

The Vanguard FTSE Pacific ETF gives investors broad access to Pacific markets. It tracks the FTSE Pacific Index, covering large, mid, and small companies in places like Japan, Australia, and Hong Kong. This low-cost ETF, with only 0.07% expense ratio, offers diversified exposure to the region’s growth potential.

VPL has generated more than 32% for investors over the past year. The fund carries a much higher and lucrative dividend yield of 3.65%. VPL has a relatively smaller AUM of $7.95 billion but has 2,335 holdings in its portfolio.

Its top five holdings include Samsung Electronics SSNLF +54.05% ▲ , SK Hynix (HXSCL), Toyota Motors TM -0.71% ▼ , Commonwealth Bank of Australia CBA -0.97% ▼ , and Mitsubishi UFJ Financial Group 8306 -1.65% ▼ .

Vanguard FTSE Europe ETF VGK -1.87% ▼

The Vanguard FTSE Europe ETF provides broad exposure to European stocks. It tracks the FTSE Developed Europe All Cap Index, including large, mid, and small companies across developed Europe. This low-cost ETF (0.06% expense ratio) offers diversification across industries for growth and stability in the region.

VGK has returned nearly 13% to investors over the past year. It also carries an above average dividend yield of 2.91%. VGK’s AUM stands at $30.47 billion and has 1,238 holdings in its portfolio.

VGK’s top five holdings include ASML Holdings ASML -2.78% ▼ , Roche Holding ROG +0.50% ▲ , Novartis NOVN -0.12% ▼ , HSBC Holdings HSBA -0.94% ▼ , and AstraZeneca AZN -1.89% ▼ .

Ending Thoughts

To conclude, VPL edges out VGK with superior one-year returns (32% vs. 13%), a higher dividend yield (3.65% vs. 2.91%), and exposure to Asia’s dynamic tech and commodity growth, despite VGK’s larger scale and Europe’s defensive stability.

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