VB vs VTCIX
Vanguard Morningstar Small-Cap ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VB delivered stronger 1-year returns. VB offers more diversification with 1,311 holdings.
Side-by-Side Comparison
| Metric | VB | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $79.7B | $5.2B | |
| Dividend Yield | 1.22% | 0.93% | |
| Holdings | 1,311 | 836 | |
| YTD Return | +15.77% | +12.47% | |
| 1Y Return | +20.23% | +18.47% | |
| 3Y Return (annualized) | +16.22% | +19.48% | |
| 5Y Return (annualized) | +7.40% | +10.79% | |
| Volatility (annualized) | 18.9% | 16.1% | |
| Max Drawdown | -61.0% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Feb 24, 1999 |
VB vs VTCIX Performance
Vanguard Morningstar Small-Cap ETF (VB) is a 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 +20.23% while VTCIX returned +18.47%. Year to date, VB is up 15.77% versus a gain of 12.47% for VTCIX.
Over three years, VB compounded at +16.22% per year against +19.48% for VTCIX; over five years the annualized figures are +7.40% and +10.79% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.79% annualized vs +8.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 16.1% 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 -61.0% for VB 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 0.89. 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 1.22% against 0.93% for VTCIX.
Holdings Overlap
VB and VTCIX share 410 holdings out of 1716 unique holdings combined, representing a 8.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VTCIX?
VB has an expense ratio of 0.03% while VTCIX charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VB or VTCIX?
Over the past year VB returned +20.23% vs +18.47% for VTCIX, so VB leads on 1-year performance. Over the longest common window we track (5 years), VB annualized +8.75% vs +10.79% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VB or VTCIX?
VB has been the more volatile fund at 18.9% annualized versus 16.1% for VTCIX. Worst drawdown: VB -61.0% vs VTCIX -26.0%.
Should I hold both VB and VTCIX?
VB and VTCIX have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VTCIX?
VB and VTCIX share 410 common holdings with a 8.6% weight overlap. Combined, they hold 1716 unique securities.
Which pays a higher dividend, VB or VTCIX?
VB yields 1.22% while VTCIX yields 0.93%, so VB currently pays the higher dividend yield.
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