VBK vs VTCIX
Vanguard Small Cap Growth ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VBK delivered stronger 1-year returns. VTCIX offers more diversification with 825 holdings.
Side-by-Side Comparison
| Metric | VBK | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $24.8B | $5.2B | |
| Dividend Yield | 0.57% | 1.08% | |
| Holdings | 561 | 836 | |
| YTD Return | +17.33% | +13.10% | |
| 1Y Return | +29.87% | +22.40% | |
| 3Y Return (annualized) | +17.09% | +19.72% | |
| 5Y Return (annualized) | +5.39% | +11.35% | |
| Volatility (annualized) | 19.6% | 16.1% | |
| Max Drawdown | -59.4% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Feb 24, 1999 |
VBK vs VTCIX Performance
Vanguard Small Cap Growth ETF (VBK) 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 VBK returned +29.87% while VTCIX returned +22.40%. Year to date, VBK is up 17.33% versus a gain of 13.10% for VTCIX.
Over three years, VBK compounded at +17.09% per year against +19.72% for VTCIX; over five years the annualized figures are +5.39% and +11.35% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.35% annualized vs +9.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -59.4% for VBK 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VBK 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, VBK currently yields 0.57% against 1.08% for VTCIX.
Holdings Overlap
VBK and VTCIX share 158 holdings out of 1209 unique holdings combined, representing a 3.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or VTCIX?
VBK has an expense ratio of 0.05% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBK or VTCIX?
Over the past year VBK returned +29.87% vs +22.40% for VTCIX, so VBK leads on 1-year performance. Over the longest common window we track (5 years), VBK annualized +9.39% vs +11.35% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VBK or VTCIX?
VBK has been the more volatile fund at 19.6% annualized versus 16.1% for VTCIX. Worst drawdown: VBK -59.4% vs VTCIX -26.0%.
Should I hold both VBK and VTCIX?
VBK and VTCIX have a monthly-return correlation of 0.90, 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 VBK and VTCIX?
VBK and VTCIX share 158 common holdings with a 3.3% weight overlap. Combined, they hold 1209 unique securities.
Which pays a higher dividend, VBK or VTCIX?
VBK yields 0.57% while VTCIX yields 1.08%, so VTCIX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.