How to Gain Broad Europe Investing Exposure for a Low Fee

VGK “is one of the cheapest and best-diversified funds in the Europe stock Morningstar Category. The portfolio is made up of nearly 1,200 stocks across the market-cap spectrum from 16 developed countries in Europe, representing 98% of the investable market,” said Morningstar.

VGK just got a little cheaper. Earlier this year, Vanguard unveiled another round of fee cuts and VGK was part of that group. The Europe ETF now charges 0.1% per year, or $10 on a $10,000 investment, down from 0.12% per year.

Still, VGK has a mediocre long-term track record, perhaps due to the fact that it doesn’t hedge currency risk.

“So far, performance has been lackluster. Over the trailing five-, 10-, and 15-year periods through March 2017, the fund slightly lagged the category average return but performed in line with its index peers. Like many of its peers the fund does not hedge its currency risk,” adds Morningstar.

For more information on the European markets, visit our Europe category.