VCIT vs VTCIX
Vanguard Intermediate Term Corporate Bond ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | VCIT | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $67.3B | $5.2B | |
| Dividend Yield | 4.77% | 1.08% | |
| Holdings | 2,253 | 836 | |
| YTD Return | -0.37% | +13.07% | |
| 1Y Return | +2.11% | +20.36% | |
| 3Y Return (annualized) | +6.17% | +19.81% | |
| 5Y Return (annualized) | +0.77% | +11.22% | |
| Volatility (annualized) | 6.0% | 16.1% | |
| Max Drawdown | -20.7% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Feb 24, 1999 |
VCIT vs VTCIX Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) 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 VCIT returned +2.11% while VTCIX returned +20.36%. Year to date, VCIT is down 0.37% versus a gain of 13.07% for VTCIX.
Over three years, VCIT compounded at +6.17% per year against +19.81% for VTCIX; over five years the annualized figures are +0.77% and +11.22% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.22% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 6.0% for VCIT. 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 -20.7% for VCIT 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCIT charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VCIT currently yields 4.77% against 1.08% for VTCIX.
Holdings Overlap
VCIT and VTCIX share 3 holdings out of 2841 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VCIT or VTCIX?
VCIT 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, VCIT or VTCIX?
Over the past year VCIT returned +2.11% vs +20.36% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VCIT annualized +1.75% vs +11.22% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VCIT or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 6.0% for VCIT. Worst drawdown: VCIT -20.7% vs VTCIX -26.0%.
Should I hold both VCIT and VTCIX?
VCIT and VTCIX have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCIT and VTCIX?
VCIT and VTCIX share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2841 unique securities.
Which pays a higher dividend, VCIT or VTCIX?
VCIT yields 4.77% while VTCIX yields 1.08%, so VCIT currently pays the higher dividend yield.
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