VEU vs VTCIX
Vanguard FTSE All World Ex US ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VEU | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $68.4B | $5.2B | |
| Dividend Yield | 2.55% | 0.93% | |
| Holdings | 3,928 | 836 | |
| YTD Return | +15.44% | +12.08% | |
| 1Y Return | +27.32% | +20.64% | |
| 3Y Return (annualized) | +21.13% | +20.37% | |
| 5Y Return (annualized) | +9.93% | +11.00% | |
| Volatility (annualized) | 17.7% | 16.1% | |
| Max Drawdown | -62.8% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2007 | Feb 24, 1999 |
VEU vs VTCIX Performance
Vanguard FTSE All World Ex US ETF (VEU) 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 VEU returned +27.32% while VTCIX returned +20.64%. Year to date, VEU is up 15.44% versus a gain of 12.08% for VTCIX.
Over three years, VEU compounded at +21.13% per year against +20.37% for VTCIX; over five years the annualized figures are +9.93% and +11.00% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +3.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while VTCIX charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VEU currently yields 2.55% against 0.93% for VTCIX.
Holdings Overlap
VEU and VTCIX share 6 holdings out of 3640 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, VEU or VTCIX?
VEU has an expense ratio of 0.04% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEU or VTCIX?
Over the past year VEU returned +27.32% vs +20.64% for VTCIX, so VEU leads on 1-year performance. Over the longest common window we track (5 years), VEU annualized +3.59% vs +11.00% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VEU or VTCIX?
VEU has been the more volatile fund at 17.7% annualized versus 16.1% for VTCIX. Worst drawdown: VEU -62.8% vs VTCIX -26.0%.
Should I hold both VEU and VTCIX?
VEU and VTCIX have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VTCIX?
VEU and VTCIX share 6 common holdings with a 0.2% weight overlap. Combined, they hold 3640 unique securities.
Which pays a higher dividend, VEU or VTCIX?
VEU yields 2.55% while VTCIX yields 0.93%, so VEU currently pays the higher dividend yield.
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