VDIGX vs VTCIX
Vanguard Dividend Growth Fund Investor Class vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VDIGX | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $35.5B | $5.2B | |
| Dividend Yield | 23.36% | 0.93% | |
| Holdings | 55 | 836 | |
| YTD Return | -0.88% | +12.53% | |
| 1Y Return | -11.33% | +20.38% | |
| 3Y Return (annualized) | -2.77% | +20.44% | |
| 5Y Return (annualized) | -3.21% | +11.10% | |
| Volatility (annualized) | 16.1% | 16.1% | |
| Max Drawdown | -32.6% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Feb 24, 1999 |
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 -11.33% while VTCIX returned +20.38%. Year to date, VDIGX is down 0.88% versus a gain of 12.53% for VTCIX.
Over three years, VDIGX compounded at -2.77% per year against +20.44% for VTCIX; over five years the annualized figures are -3.21% and +11.10% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.10% annualized vs -3.21%. 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 16.1% for VDIGX. 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 23.36% against 0.93% for VTCIX.
Holdings Overlap
VDIGX and VTCIX share 45 holdings out of 827 unique holdings combined, representing a 26.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VDIGX or VTCIX?
Over the past year VDIGX returned -11.33% vs +20.38% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.21% vs +11.10% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VDIGX or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 16.1% for VDIGX. 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and VTCIX?
VDIGX and VTCIX share 45 common holdings with a 26.6% weight overlap. Combined, they hold 827 unique securities.
Which pays a higher dividend, VDIGX or VTCIX?
VDIGX yields 23.36% while VTCIX yields 0.93%, so VDIGX currently pays the higher dividend yield.
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