VBR vs VTCIX
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VBR or VTCIX?
Small Cap Value against Large Cap Blend.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% 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 | VBR | VTCIX |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $37.3B | $5.2B |
| Dividend Yield | 1.76% | 0.90% |
| Holdings | 847 | 836 |
| YTD Price Return | +12.05%Best | +11.35% |
| 1Y Price Return | +15.04% | +16.89%Best |
| 3Y Price Return (annualized) | +13.52% | +19.15%Best |
| 5Y Price Return (annualized) | +7.15% | +10.87%Best |
| Volatility (annualized) | 18.6% | 15.9%Best |
| Max Drawdown | -25.1%Best | -26.0% |
| $10,000 over 5 years | $14,124 | $16,752Best |
| Top 10 Weight | 5.9%Best | 33.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | 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. VBR yields 1.76% and VTCIX 0.90% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 9, 2026 (5 years).
VBR 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.
VBR vs VTCIX Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) 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 VBR returned +15.04% while VTCIX returned +16.89%. Year to date, VBR is up 12.05% versus a gain of 11.35% for VTCIX.
Over three years, VBR compounded at +13.52% per year against +19.15% for VTCIX; over five years the annualized figures are +7.15% and +10.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -25.1% for VBR 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR 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, VBR currently yields 1.76% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VBR 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
57.1% of VBR's money is in holdings VTCIX also owns. 7.2% of VTCIX's money is in holdings VBR also owns.
The two portfolios partly overlap.
279 positions in common, counted across the 835 positions we hold weights for in VBR and 884 in VTCIX, against full books of 847 and 836.
What only one of them owns
Our book lists 523 positions for VTCIX that do not appear in our book for VBR (91.3% of the fund), and 524 for VBR that do not appear in VTCIX (39.8%).
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 VBR | Weight in VTCIX | Difference |
|---|---|---|---|
| METAMetaplanet Inc | 0.00% | 1.79% | 1.79% |
| JBLJabil, Inc. | 0.87% | 0.05% | 0.82% |
| NRGNrg Energy Inc. | 0.66% | 0.07% | 0.59% |
| ATOAtmos Energy Corp | 0.61% | 0.08% | 0.53% |
| TPRTapestry Inc. | 0.63% | 0.01% | 0.62% |
| MRNAModerna Inc | 0.53% | 0.06% | 0.47% |
| WSMWilliams-sonoma Inc | 0.59% | 0.00% | 0.59% |
| JBHTJb Hunt Transport Services Inc. | 0.47% | 0.07% | 0.40% |
| USFDUS Foods Holding Corp | 0.48% | 0.05% | 0.43% |
| FFIVF5 Networks Inc. | 0.50% | 0.02% | 0.48% |
57.1% of VBR 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, VBR or VTCIX?
VBR 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, VBR or VTCIX?
Over the past year VBR returned +15.04% vs +16.89% 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, VBR or VTCIX?
VBR has been the more volatile fund at 18.6% annualized versus 15.9% for VTCIX. Worst drawdown: VBR -25.1% vs VTCIX -26.0%.
Should I hold both VBR and VTCIX?
VBR and VTCIX have a monthly-return correlation of 0.84, 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 VBR and VTCIX?
57.1% of VBR's money is in holdings VTCIX also owns. 7.2% of VTCIX's is in holdings VBR also owns. They hold 279 positions in common, counted across the 835 positions we hold weights for in VBR and 884 in VTCIX.
Which pays a higher dividend, VBR or VTCIX?
VBR yields 1.76% while VTCIX yields 0.90%, so VBR currently pays the higher dividend yield.
Is it better to hold VTCIX or VBR in a taxable account?
VBR 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 VBR?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% 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.