VEA vs VTCIX
Vanguard FTSE Developed Markets ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VEA or VTCIX?
Each has led over a different period.
VEA led over 1Y, VTCIX over 3Y, 5Y and the full window.
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 | VEA | VTCIX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $230.3B | $5.2B |
| Dividend Yield | 2.49% | 0.90% |
| Holdings | 3,886 | 836 |
| YTD Price Return | +13.80%Best | +11.35% |
| 1Y Price Return | +21.06%Best | +16.89% |
| 3Y Price Return (annualized) | +16.50% | +19.15%Best |
| 5Y Price Return (annualized) | +6.42% | +10.87%Best |
| Volatility (annualized) | 16.3% | 15.9%Best |
| Max Drawdown | -31.9% | -26.0%Best |
| $10,000 over 5 years | $13,649 | $16,752Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 20, 2007 | Feb 24, 1999 |
Not shown on this pair: Top 10 Weight.
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. VEA yields 2.49% 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).
VEA 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.
VEA vs VTCIX Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +21.06% while VTCIX returned +16.89%. Year to date, VEA is up 13.80% versus a gain of 11.35% for VTCIX.
Over three years, VEA compounded at +16.50% per year against +19.15% for VTCIX; over five years the annualized figures are +6.42% and +10.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -31.9% for VEA 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.49% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VEA 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
At least 0.3% of VTCIX's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
9 positions in common, counted across the 3,744 positions we hold weights for in VEA and 884 in VTCIX, against full books of 3,886 and 836.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VTCIX | Difference |
|---|---|---|---|
| COFCapital One Financial Corp. | 0.00% | 0.19% | 0.19% |
| SUNBSunbelt Rentals | 0.09% | 0.03% | 0.06% |
| UMG:ASUniversal Music Group N.V. Universal Music Group N V | 0.07% | 0.04% | 0.03% |
| RBA:CARb Global Inc | 0.07% | 0.02% | 0.05% |
| GFL:CAGfl Environmental Inc | 0.03% | 0.01% | 0.02% |
| AMAntero Midstream Corp | 0.02% | 0.01% | 0.01% |
| CCCSCCC Intelligent Solutions Holdings Inc | 0.01% | 0.00% | 0.01% |
| SMGScotts Miracle-Gro Company | 0.00% | 0.01% | 0.01% |
| AII:CAAlmonty Industri | 0.01% | 0.00% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of VEA and VTCIX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VEA or VTCIX?
VEA has an expense ratio of 0.03% while VTCIX charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VEA or VTCIX?
Over the past year VEA returned +21.06% vs +16.89% for VTCIX, so VEA leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VTCIX?
VEA has been the more volatile fund at 16.3% annualized versus 15.9% for VTCIX. Worst drawdown: VEA -31.9% vs VTCIX -26.0%.
Should I hold both VEA and VTCIX?
VEA and VTCIX have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VEA or VTCIX?
VEA yields 2.49% while VTCIX yields 0.90%, so VEA currently pays the higher dividend yield.
Is it better to hold VTCIX or VEA in a taxable account?
VEA 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 VEA?
VEA led over 1Y, VTCIX over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.