VDIGX vs VTCIX
Vanguard Dividend Growth Fund Investor Class vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VDIGX or VTCIX?
VTCIX has been ahead.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 38.2%.
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 | VDIGX | VTCIX |
|---|---|---|
| Expense Ratio | 0.20% | 0.03%Best |
| AUM | $35.5B | $5.2B |
| Dividend Yield | 23.10% | 0.90% |
| Holdings | 62 | 836 |
| YTD Price Return | -3.77% | +11.35%Best |
| 1Y Price Return | -14.05% | +16.89%Best |
| 3Y Price Return (annualized) | -3.80% | +19.15%Best |
| 5Y Price Return (annualized) | -3.58% | +10.87%Best |
| Volatility (annualized) | 16.0% | 15.9%Best |
| Max Drawdown | -32.6% | -26.0%Best |
| $10,000 over 5 years | $8,334 | $16,752Best |
| Top 10 Weight | 38.2% | 33.3%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 15, 1992 | Feb 24, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VDIGX or VTCIX. Both funds are measured the same way, so the comparison holds. VDIGX yields 23.10% 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).
VDIGX 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.
VDIGX vs VTCIX Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year VDIGX returned -14.05% while VTCIX returned +16.89%. Year to date, VDIGX is down 3.77% versus a gain of 11.35% for VTCIX.
Over three years, VDIGX compounded at -3.80% per year against +19.15% for VTCIX; over five years the annualized figures are -3.58% and +10.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.0% 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 -32.6% for VDIGX 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDIGX charges 0.20% per year while VTCIX charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, VDIGX currently yields 23.10% against 0.90% for VTCIX.
Holdings Overlap
97.1% of VDIGX's money is in holdings VTCIX also owns. 31.4% of VTCIX's money is in holdings VDIGX also owns.
Most of VDIGX is already inside VTCIX. Owning both mostly buys the same companies twice.
49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 884 in VTCIX, against full books of 62 and 836.
What only one of them owns
Our book lists 689 positions for VTCIX that do not appear in our book for VDIGX (67.0% of the fund), and 0 for VDIGX that do not appear in VTCIX (0.0%).
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 VDIGX | Weight in VTCIX | Difference |
|---|---|---|---|
| AAPLApple, Inc | 3.43% | 6.06% | 2.63% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.62% | 3.91% | 0.71% |
| AVGOBroadcom Inc | 5.73% | 2.51% | 3.22% |
| LLYEli Lilly & Co. | 5.10% | 1.40% | 3.70% |
| KLACKla Corp. | 3.71% | 0.78% | 2.93% |
| GOOGLAlphabet A Usd 0.001 | 1.49% | 2.90% | 1.41% |
| MAMastercard Inc | 3.56% | 0.61% | 2.95% |
| VVisa Inc | 3.23% | 0.82% | 2.41% |
| TXNTexas Instruments, Inc | 3.54% | 0.36% | 3.18% |
| MRKMerck & Co. Inc. | 2.64% | 0.44% | 2.20% |
97.1% of VDIGX 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, VDIGX or VTCIX?
VDIGX has an expense ratio of 0.20% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, VDIGX or VTCIX?
Over the past year VDIGX returned -14.05% 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, VDIGX or VTCIX?
VDIGX has been the more volatile fund at 16.0% annualized versus 15.9% for VTCIX. Worst drawdown: VDIGX -32.6% vs VTCIX -26.0%.
Should I hold both VDIGX and VTCIX?
VDIGX and VTCIX have a monthly-return correlation of 0.77, 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 VDIGX and VTCIX?
97.1% of VDIGX's money is in holdings VTCIX also owns. 31.4% of VTCIX's is in holdings VDIGX also owns. They hold 49 positions in common, counted across the 51 positions we hold weights for in VDIGX and 884 in VTCIX.
Which pays a higher dividend, VDIGX or VTCIX?
VDIGX yields 23.10% while VTCIX yields 0.90%, so VDIGX currently pays the higher dividend yield.
Is VTCIX better than VDIGX?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.