EDV vs VTCIX
Vanguard Extended Duration Treasury ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, EDV or VTCIX?
Long Term Government Bond against Large Cap Blend.
VTCIX has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EDV | VTCIX |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $3.7B | $5.2B |
| Dividend Yield | 5.41% | 0.90% |
| Holdings | 83 | 890 |
| YTD Price Return | -15.41% | +11.12% |
| 1Y Price Return | -19.12% | +14.05% |
| 3Y Price Return (annualized) | -6.78% | +21.00% |
| 5Y Price Return (annualized) | -16.67% | +11.73% |
| Volatility (annualized) | 20.7% | 15.8%Best |
| Max Drawdown | -62.6% | -26.0%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Government Bond | Large Cap Blend |
| Inception | Dec 6, 2007 | Feb 24, 1999 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. EDV currently yields 5.41% and VTCIX 0.90%.
Volatility and max drawdown are measured over the window both funds cover: Oct 4, 2021 to Sep 30, 2026 (5 years).
EDV vs VTCIX Performance
Vanguard Extended Duration Treasury ETF (EDV) is an ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year EDV's price moved -19.12% and VTCIX's +14.05%, before the income each one paid out.
Over three years, EDV compounded at -6.78% per year against +21.00% for VTCIX; over five years the annualized figures are -16.67% and +11.73% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDV has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 15.8% for VTCIX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -62.6% for EDV and -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
EDV charges 0.05% per year while VTCIX charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, EDV currently yields 5.41% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and EDV is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
You are not choosing between two funds in isolation.
Whichever of EDV and VTCIX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EDV or VTCIX?
EDV has an expense ratio of 0.05% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $2 a year on a $10,000 investment.
Which is riskier, EDV or VTCIX?
EDV has been the more volatile fund at 20.7% annualized versus 15.8% for VTCIX. Worst drawdown: EDV -62.6% vs VTCIX -26.0%.
Should I hold both EDV and VTCIX?
EDV and VTCIX have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, EDV or VTCIX?
EDV yields 5.41% while VTCIX yields 0.90%, so EDV currently pays the higher dividend yield.
Is it better to hold VTCIX or EDV in a taxable account?
EDV is an ETF and VTCIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTCIX better than EDV?
VTCIX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.