VEA vs VTCIX
Vanguard FTSE Developed Markets ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3,918 holdings.
Side-by-Side Comparison
| Metric | VEA | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.3B | $5.2B | |
| Dividend Yield | 2.55% | 0.93% | |
| Holdings | 3,918 | 836 | |
| YTD Return | +16.06% | +12.53% | |
| 1Y Return | +27.26% | +20.38% | |
| 3Y Return (annualized) | +21.36% | +20.44% | |
| 5Y Return (annualized) | +10.59% | +11.10% | |
| Volatility (annualized) | 17.8% | 16.1% | |
| Max Drawdown | -62.9% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Feb 24, 1999 |
VEA vs VTCIX Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +27.26% while VTCIX returned +20.38%. Year to date, VEA is up 16.06% versus a gain of 12.53% for VTCIX.
Over three years, VEA compounded at +21.36% per year against +20.44% for VTCIX; over five years the annualized figures are +10.59% and +11.10% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.10% annualized vs +3.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 16.1% 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 -62.9% for VEA 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 0.81. 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 2.55% against 0.93% for VTCIX.
Holdings Overlap
VEA and VTCIX share 4 holdings out of 4565 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VTCIX?
VEA 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, VEA or VTCIX?
Over the past year VEA returned +27.26% vs +20.38% for VTCIX, so VEA leads on 1-year performance. Over the longest common window we track (5 years), VEA annualized +3.13% vs +11.10% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VEA or VTCIX?
VEA has been the more volatile fund at 17.8% annualized versus 16.1% for VTCIX. Worst drawdown: VEA -62.9% vs VTCIX -26.0%.
Should I hold both VEA and VTCIX?
VEA and VTCIX have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VTCIX?
VEA and VTCIX share 4 common holdings with a 0.0% weight overlap. Combined, they hold 4565 unique securities.
Which pays a higher dividend, VEA or VTCIX?
VEA yields 2.55% while VTCIX yields 0.93%, so VEA currently pays the higher dividend yield.
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