VBK vs VTCIX
Vanguard Morningstar Small-Cap Growth ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VBK or VTCIX?
Small Cap Growth against Large Cap Blend.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VBK is less concentrated, with 9.1% 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 | VBK | VTCIX |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $23.2B | $5.2B |
| Dividend Yield | 0.44% | 0.90% |
| Holdings | 553 | 836 |
| YTD Price Return | +10.21% | +11.42%Best |
| 1Y Price Return | +10.89% | +14.87%Best |
| 3Y Price Return (annualized) | +15.35% | +19.57%Best |
| 5Y Price Return (annualized) | +3.46% | +11.40%Best |
| Volatility (annualized) | 21.0% | 15.9%Best |
| Max Drawdown | -38.5% | -26.0%Best |
| $10,000 over 5 years | $11,854 | $17,156Best |
| Top 10 Weight | 9.1%Best | 33.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | 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. VBK yields 0.44% 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).
VBK 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.
VBK vs VTCIX Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) 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 VBK returned +10.89% while VTCIX returned +14.87%. Year to date, VBK is up 10.21% versus a gain of 11.42% for VTCIX.
Over three years, VBK compounded at +15.35% per year against +19.57% for VTCIX; over five years the annualized figures are +3.46% and +11.40% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 21.0% 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 -38.5% for VBK 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 0.90. 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 0.44% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VBK 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
62.7% of VBK's money is in holdings VTCIX also owns. 3.9% of VTCIX's money is in holdings VBK also owns.
The two portfolios partly overlap.
204 positions in common, counted across the 542 positions we hold weights for in VBK and 885 in VTCIX, against full books of 553 and 836.
What only one of them owns
Our book lists 583 positions for VTCIX that do not appear in our book for VBK (94.8% of the fund), and 327 for VBK that do not appear in VTCIX (33.0%).
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 VBK | Weight in VTCIX | Difference |
|---|---|---|---|
| CRDO:KYCredo Technology Group Holding Ltd | 1.24% | 0.06% | 1.18% |
| RVMDRevolution Medicines Inc | 1.04% | 0.07% | 0.97% |
| ALABAstera Labs Inc - Common | 1.02% | 0.09% | 0.93% |
| NTRANatera Inc | 1.01% | 0.05% | 0.96% |
| TWLOTwilio Inc. Class A | 0.86% | 0.04% | 0.82% |
| CASYCaseys General | 0.80% | 0.07% | 0.73% |
| CRSCarpenter Technology Corpcommon Stock | 0.80% | 0.02% | 0.78% |
| CWCurtiss-wright Corp | 0.77% | 0.04% | 0.73% |
| NVT:IENvent Electric Plc Ordinary Shares | 0.75% | 0.05% | 0.70% |
| FTAIFTAI Aviation Ltd | 0.76% | 0.04% | 0.72% |
62.7% of VBK 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, VBK or VTCIX?
VBK has an expense ratio of 0.05% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VBK or VTCIX?
Over the past year VBK returned +10.89% 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, VBK or VTCIX?
VBK has been the more volatile fund at 21.0% annualized versus 15.9% for VTCIX. Worst drawdown: VBK -38.5% 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. 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 VBK and VTCIX?
62.7% of VBK's money is in holdings VTCIX also owns. 3.9% of VTCIX's is in holdings VBK also owns. They hold 204 positions in common, counted across the 542 positions we hold weights for in VBK and 885 in VTCIX.
Which pays a higher dividend, VBK or VTCIX?
VBK yields 0.44% while VTCIX yields 0.90%, so VTCIX currently pays the higher dividend yield.
Is it better to hold VTCIX or VBK in a taxable account?
VBK 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 VBK?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VBK is less concentrated, with 9.1% 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.