IEUR vs VGK: Weighing the Differences in Two Major European Equity ETFs

Key Takeaways

• Both funds are broad, passively managed developed-Europe equity ETFs, but they track different indexes: IEUR follows the MSCI Europe Investable Market Index, while VGK follows the FTSE Developed Europe All Cap Index.
• VGK is the lower-cost and larger fund, with a 0.06% expense ratio and roughly $30 billion in assets, versus IEUR's 0.09% net expense ratio and roughly $9.5 billion.
• The two funds share nearly identical top holdings and sector exposure, both led by financials, industrials, healthcare, and technology.
• VGK holds meaningfully more names (roughly 1,240) than IEUR (roughly 1,000), giving it slightly broader small- and mid-cap coverage.
• Because the portfolios are so similar, cost efficiency, scale, and liquidity are the key differentiators in this ETF comparison.
• Tickeron AI Verdict: VGK — the lower expense ratio, larger asset base, and deeper diversification give Vanguard's fund a structural edge.

Why These Two Europe ETFs Stand Out

Investors looking for diversified exposure to European equities often consider the iShares Core MSCI Europe ETF (IEUR) and the Vanguard FTSE Europe ETF (VGK). These are established, low-cost options that provide market-cap-weighted access to developed European stocks across large-, mid-, and small-cap segments. Both draw from many of the same leading companies, including Dutch semiconductor equipment maker ASML and Swiss pharmaceutical names. With attention on European markets amid evolving interest-rate paths, a steady financials sector, and broader geopolitical factors, it helps to understand how these two funds differ structurally.

IEUR: Broad Developed-Europe Coverage

IEUR tracks the MSCI Europe Investable Market Index, a free-float-adjusted, market-capitalization-weighted benchmark that spans large-, mid-, and small-cap companies in 15 developed European markets. The fund typically holds around 1,000 securities, with the United Kingdom accounting for roughly 20% of assets, followed by Germany, France, and Switzerland. Top holdings feature ASML, Roche, HSBC, Shell, Novartis, Nestlé, AstraZeneca (AZN), and SAP. Sector weights are led by financials at around 24%, industrials at around 19%, healthcare at around 12%, and technology at around 9%. The fund uses representative sampling, carries a net expense ratio of 0.09%, and is managed by BlackRock. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.

VGK: Larger Scale and Lower Costs

VGK tracks the FTSE Developed Europe All Cap Index and has been available since 2005. It is the larger and more liquid option, with roughly $30 billion in assets and around 1,240 holdings. Country allocations are similar, with the United Kingdom at roughly 22%, followed by Switzerland, France, and Germany. Top holdings largely overlap with IEUR and include ASML, HSBC, Roche, Novartis, Nestlé, Shell (SHEL), AstraZeneca, Siemens, and SAP. Sector weights are led by financials at around 25%, industrials at around 20%, healthcare at around 12%, and technology at around 9%. The expense ratio stands at just 0.06%, and the fund uses full replication. From what I see, the combination of scale and lower fees gives it a noticeable structural advantage.

Current Market Context for European Equities

European equities have attracted fresh interest as investors assess monetary policy differences between the European Central Bank and the U.S. Federal Reserve. Financials, the largest sector in both funds, have benefited from a higher-for-longer rate environment that supports bank margins. Industrials remain tied to manufacturing and trade trends, while the technology exposure anchored by ASML and SAP links both ETFs to the broader capex cycle. Risks such as energy volatility, export dependence, regulatory changes, and regional geopolitics affect the two funds in nearly identical ways given their overlapping portfolios.

How the Funds Compare in Performance and Positioning

Because IEUR and VGK hold many of the same companies in similar proportions, their returns have moved closely together. Small differences in index construction, country weights, and small-cap exposure can lead to modest variations in volatility during style rotations, but the funds generally rise and fall together with financials, healthcare, and industrials. VGK’s slightly higher financials weighting and broader small- and mid-cap holdings can produce slight differences in return patterns. Over time, its lower expense ratio provides a persistent performance edge, while its larger asset base supports tighter spreads and better liquidity.

Tickeron AI Verdict

Based on the structural factors outlined above, Tickeron’s AI would likely favor VGK over IEUR. The edge comes from cost efficiency, scale, and diversification rather than short-term price moves: VGK’s 0.06% expense ratio versus 0.09%, its larger and more liquid asset base, and its broader roster of roughly 1,240 holdings that offers deeper small- and mid-cap exposure. With nearly identical sector and country allocations, these elements make VGK the more efficient core holding for developed European equity exposure, though IEUR remains a solid low-cost alternative.

Exploring Tickeron’s AI Tools in Practice

I often turn to Tickeron’s AI Screener when comparing ETFs like these to quickly filter holdings, review technical patterns, and assess how one fund stacks up against peers. The tool lets me apply customizable criteria around fundamentals, volatility, and performance so I can make more informed allocation choices without spending hours on manual work.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Industry description

Market Cap

High and low price notable news

Volume