VGK tracks the FTSE Developed Europe All Cap Index, which holds companies in developed European countries, with the United Kingdom, France, Switzerland, Germany and the Netherlands among the largest weights. The sector mix has more financials, industrials, healthcare and consumer staples than the US market and less technology. Returns for US investors are affected by changes in the euro, pound and Swiss franc against the dollar, because currency exposure is not hedged. European equities have traded at lower valuation multiples than US stocks for much of the past decade.
