VB vs VTCIX
Vanguard Morningstar Small-Cap ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VB or VTCIX?
Small Cap Blend against Large Cap Blend.
VTCIX led over 1Y, 3Y, 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 33.3%.
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 | VB | VTCIX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $79.7B | $5.2B |
| Dividend Yield | 1.21% | 0.90% |
| Holdings | 1,319 | 836 |
| YTD Price Return | +10.73% | +11.42%Best |
| 1Y Price Return | +11.75% | +14.87%Best |
| 3Y Price Return (annualized) | +14.22% | +19.57%Best |
| 5Y Price Return (annualized) | +5.75% | +11.40%Best |
| Volatility (annualized) | 19.1% | 15.9%Best |
| Max Drawdown | -28.8% | -26.0%Best |
| $10,000 over 5 years | $13,225 | $17,156Best |
| Top 10 Weight | 4.3%Best | 33.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | 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. VB yields 1.21% and VTCIX 0.90% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VB 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.
VB vs VTCIX Performance
Vanguard Morningstar Small-Cap ETF (VB) 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 VB returned +11.75% while VTCIX returned +14.87%. Year to date, VB is up 10.73% versus a gain of 11.42% for VTCIX.
Over three years, VB compounded at +14.22% per year against +19.57% for VTCIX; over five years the annualized figures are +5.75% and +11.40% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 15.9% 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 -28.8% for VB 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.21% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VB 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
59.1% of VB's money is in holdings VTCIX also owns. 8.6% of VTCIX's money is in holdings VB also owns.
The two portfolios partly overlap.
458 positions in common, counted across the 1,302 positions we hold weights for in VB and 885 in VTCIX, against full books of 1,319 and 836.
What only one of them owns
Our book lists 388 positions for VTCIX that do not appear in our book for VB (90.2% of the fund), and 793 for VB that do not appear in VTCIX (36.7%).
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 VB | Weight in VTCIX | Difference |
|---|---|---|---|
| CRDO:KYCredo Technology Group Holding Ltd | 0.54% | 0.06% | 0.48% |
| ALABAstera Labs Inc - Common | 0.45% | 0.09% | 0.36% |
| JBLJabil, Inc. | 0.49% | 0.05% | 0.44% |
| RVMDRevolution Medicines Inc | 0.45% | 0.07% | 0.38% |
| EMEEmcor Group Inc | 0.44% | 0.05% | 0.39% |
| NTRANatera Inc | 0.44% | 0.05% | 0.39% |
| NRGNrg Energy | 0.37% | 0.07% | 0.30% |
| ATOAtmos Energy Corp | 0.34% | 0.08% | 0.26% |
| TWLOTwilio Inc. Class A | 0.38% | 0.04% | 0.34% |
| CASYCaseys General | 0.35% | 0.07% | 0.28% |
59.1% of VB 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, VB or VTCIX?
VB 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, VB or VTCIX?
Over the past year VB returned +11.75% vs +14.87% for VTCIX, so VTCIX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VTCIX?
VB has been the more volatile fund at 19.1% annualized versus 15.9% for VTCIX. Worst drawdown: VB -28.8% vs VTCIX -26.0%.
Should I hold both VB and VTCIX?
VB and VTCIX have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VB and VTCIX?
59.1% of VB's money is in holdings VTCIX also owns. 8.6% of VTCIX's is in holdings VB also owns. They hold 458 positions in common, counted across the 1,302 positions we hold weights for in VB and 885 in VTCIX.
Which pays a higher dividend, VB or VTCIX?
VB yields 1.21% while VTCIX yields 0.90%, so VB currently pays the higher dividend yield.
Is it better to hold VTCIX or VB in a taxable account?
VB 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 VB?
VTCIX led over 1Y, 3Y, 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.