This Vanguard ETF Is Exploding in 2025 — Why $1,000 in July Could Be a Smart Move
Europe’s silent rally is turning heads — and VGK is leading the charge
If you’re looking for a simple yet powerful way to grow your money this July, there’s one Vanguard ETF that should be on your radar. While the S&P 500 rally continues into the back half of 2025—with tech, healthcare, and communications sectors leading the charge—the smartest move may be to diversify into regions and sectors that are gaining momentum. That’s where the Vanguard FTSE Europe ETF (ticker VGK, listed on NYSE Arca, international equities sector) stands out.
Europe has been one of the strongest-performing equity regions this year. VGK has surged almost 23% year-to-date, making it the best-performing Vanguard ETF so far in 2025. It tracks the FTSE Developed Europe All Cap Index, offering broad exposure to major European economies. The fund holds over 1,200 companies, with heavyweights like SAP (ETR: SAP), Nestlé (SWX: NESN), and LVMH (EPA: MC). Its low expense ratio of just 0.06% makes it a cost-efficient way to capture Europe’s unexpected upside.
Why is Europe outperforming? Eurozone inflation has cooled to around 1.9%, below the European Central Bank’s target. ECB rate cuts earlier this year have provided a tailwind for stock prices, especially in financials and consumer sectors. At the same time, volatile U.S. trade rhetoric—particularly around tariffs—has made investors look across the Atlantic for stability and value.
If you’ve been hesitant about venturing into international equities, VGK offers a compelling entry point. Vanguard, with more than $10 trillion in global assets under management, is known for its passively managed, low-cost index strategies. Its consistent leadership in ETF innovation and focus on long-term growth make it a reliable choice.
So, what happens if you invest $1,000 in VGK now? With a YTD gain near 23%, you’re buying into an already upward-trending fund—but that’s only part of the story. European valuations remain modest; VGK’s price-to-earnings ratio hovers around 16, significantly lower than many U.S. equity ETFs. That leaves room for further upside, especially if ECB stimulus efforts continue and the U.S. economic outlook encounters headwinds.
Compared to other Vanguard options, VGK distinguishes itself. The Vanguard S&P 500 ETF (VOO, NYSE Arca) and Total Stock Market ETF (VTI, NYSE Arca) remain staples with broad U.S. exposure. But both are trading at higher P/E multiples (~24), and are tech-heavy, meaning they rely on continued U.S. growth. Meanwhile, other Vanguard ETFs focused on financials or IT—like VFH (NYSE Arca, financials) and VGT (NYSE Arca, technology)—have had strong runs, but they come with higher volatility.
Even with global uncertainty and geopolitical shifts, VGK gives you a balanced stake in Europe’s recovery story. And it doesn’t stop there: by diversifying your portfolio, you reduce U.S.-centric risk and position yourself for upside from macro developments abroad.
Here’s the real kicker: placing $1,000 in VGK this July is simple and actionable. Thanks to its low expense ratio and large asset base, trade execution is smooth, and liquidity is strong. You essentially get a low-cost, passive stake in Europe's largest companies without worrying about fees eating into returns.
In short, summer 2025 could be the perfect time to lean into Europe. With equities near highs, tame inflation, and a dovish ECB, VGK offers a rare blend of affordability, momentum, and diversification. A $1,000 investment now could ride this wave effectively, giving you exposure to a region that’s quietly firing even as U.S. markets dominate the headlines.