IVV vs VTCIX
iShares Core S&P 500 ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, IVV or VTCIX?
Each has led over a different period.
IVV led over 1Y, 5Y and the full window, VTCIX over 3Y. The two have moved almost in lockstep, correlation 0.99. VTCIX is less concentrated, with 34.8% of the fund in its ten largest positions against 38.1%.
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 | IVV | VTCIX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $882.6B | $5.2B |
| Dividend Yield | 1.06% | 0.90% |
| Holdings | 508 | 890 |
| YTD Price Return | +13.42%Best | +12.26% |
| 1Y Price Return | +15.32%Best | +14.73% |
| 3Y Price Return (annualized) | +21.75% | +21.99%Best |
| 5Y Price Return (annualized) | +12.35%Best | +11.63% |
| Volatility (annualized) | 15.6%Best | 15.7% |
| Max Drawdown | -25.4%Best | -26.0% |
| $10,000 over 5 years | $17,901Best | $17,334 |
| Top 10 Weight | 38.1% | 34.8%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 2000 | Feb 24, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTCIX. Both funds are measured the same way, so the comparison holds. IVV yields 1.06% and VTCIX 0.90% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 6, 2021 to Oct 2, 2026 (5 years).
IVV vs VTCIX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
IVV vs VTCIX Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year IVV returned +15.32% while VTCIX returned +14.73%. Year to date, IVV is up 13.42% versus a gain of 12.26% for VTCIX.
Over three years, IVV compounded at +21.75% per year against +21.99% for VTCIX; over five years the annualized figures are +12.35% and +11.63% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.6% for IVV. 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 -25.4% for IVV 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IVV charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, IVV currently yields 1.06% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and IVV 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.
Holdings Overlap
97.4% of IVV's money is in holdings VTCIX also owns. 90.4% of VTCIX's money is in holdings IVV also owns.
Most of IVV is already inside VTCIX. Owning both mostly buys the same companies twice.
454 positions in common, counted across the 505 positions we hold weights for in IVV and 842 in VTCIX, against full books of 508 and 890.
What only one of them owns
Our book lists 266 positions for VTCIX that do not appear in our book for IVV (7.3% of the fund), and 46 for IVV that do not appear in VTCIX (2.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IVV | Weight in VTCIX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.00% | 6.83% | 1.17% |
| AAPLApple, Inc | 7.39% | 6.51% | 0.88% |
| MSFTMicrosoft Corp | 5.57% | 4.90% | 0.67% |
| AMZNAmazon.Com Inc | 3.80% | 3.78% | 0.02% |
| GOOGLAlphabet Inc,class A | 3.00% | 2.91% | 0.09% |
| AVGOBroadcom Inc | 2.59% | 2.60% | 0.01% |
| GOOGAlphabet Inc. C | 2.40% | 2.49% | 0.09% |
| METAMeta Platforms Inc | 2.15% | 1.77% | 0.38% |
| MUMicron Technology, Inc. | 1.66% | 1.32% | 0.34% |
| JPMJpmorgan Chase | 1.44% | 1.51% | 0.07% |
97.4% of IVV is already inside VTCIX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IVV or VTCIX?
IVV has an expense ratio of 0.03% while VTCIX charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, IVV or VTCIX?
Over the past year IVV returned +15.32% vs +14.73% for VTCIX, so IVV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or VTCIX?
VTCIX has been the more volatile fund at 15.7% annualized versus 15.6% for IVV. Worst drawdown: IVV -25.4% vs VTCIX -26.0%.
Should I hold both IVV and VTCIX?
IVV and VTCIX have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IVV and VTCIX?
97.4% of IVV's money is in holdings VTCIX also owns. 90.4% of VTCIX's is in holdings IVV also owns. They hold 454 positions in common, counted across the 505 positions we hold weights for in IVV and 842 in VTCIX.
Which pays a higher dividend, IVV or VTCIX?
IVV yields 1.06% while VTCIX yields 0.90%, so IVV currently pays the higher dividend yield.
Is it better to hold VTCIX or IVV in a taxable account?
IVV 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 IVV?
IVV led over 1Y, 5Y and the full window, VTCIX over 3Y. The two have moved almost in lockstep, correlation 0.99. VTCIX is less concentrated, with 34.8% of the fund in its ten largest positions against 38.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.