SPY vs VTCIX
State Street SPDR S&P 500 ETF Trust vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. SPY delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | SPY | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $821.1B | $5.2B | |
| Dividend Yield | 1.01% | 0.93% | |
| Holdings | 505 | 836 | |
| YTD Return | +12.68% | +11.54% | |
| 1Y Return | +21.82% | +19.63% | |
| 3Y Return (annualized) | +21.98% | +20.07% | |
| 5Y Return (annualized) | +12.89% | +10.90% | |
| Volatility (annualized) | 15.3% | 16.1% | |
| Max Drawdown | -56.5% | -26.0% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Feb 24, 1999 |
SPY vs VTCIX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year SPY returned +21.82% while VTCIX returned +19.63%. Year to date, SPY is up 12.68% versus a gain of 11.54% for VTCIX.
Over three years, SPY compounded at +21.98% per year against +20.07% for VTCIX; over five years the annualized figures are +12.89% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.3% for SPY. 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 -56.5% for SPY and -26.0% for VTCIX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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
SPY charges 0.09% per year while VTCIX charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.93% for VTCIX.
Holdings Overlap
SPY and VTCIX share 468 holdings out of 861 unique holdings combined, representing a 83.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or VTCIX?
SPY has an expense ratio of 0.09% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VTCIX?
Over the past year SPY returned +21.82% vs +19.63% for VTCIX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.81% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, SPY or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VTCIX -26.0%.
Should I hold both SPY and VTCIX?
SPY and VTCIX have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and VTCIX?
SPY and VTCIX share 468 common holdings with a 83.8% weight overlap. Combined, they hold 861 unique securities.
Which pays a higher dividend, SPY or VTCIX?
SPY yields 1.01% while VTCIX yields 0.93%, so SPY currently pays the higher dividend yield.
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