VGHAX vs VTCIX
Vanguard Health Care Fund Admiral Shares vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VGHAX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VGHAX | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.03% | |
| AUM | $32.8B | $5.2B | |
| Dividend Yield | 6.45% | 0.93% | |
| Holdings | 109 | 836 | |
| YTD Return | +6.28% | +12.08% | |
| 1Y Return | +23.01% | +20.64% | |
| 3Y Return (annualized) | +1.17% | +20.37% | |
| 5Y Return (annualized) | -2.22% | +11.00% | |
| Volatility (annualized) | 15.6% | 16.1% | |
| Max Drawdown | -33.6% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Feb 24, 1999 |
VGHAX vs VTCIX Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) 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 VGHAX returned +23.01% while VTCIX returned +20.64%. Year to date, VGHAX is up 6.28% versus a gain of 12.08% for VTCIX.
Over three years, VGHAX compounded at +1.17% per year against +20.37% for VTCIX; over five years the annualized figures are -2.22% and +11.00% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs -2.22%. 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 15.6% for VGHAX. 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 -33.6% for VGHAX 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while VTCIX charges 0.03%. On a $10,000 position that is $27 vs $3 annually, a gap of $24 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 0.93% for VTCIX.
Holdings Overlap
VGHAX and VTCIX share 36 holdings out of 875 unique holdings combined, representing a 6.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or VTCIX?
VGHAX has an expense ratio of 0.27% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, VGHAX or VTCIX?
Over the past year VGHAX returned +23.01% vs +20.64% for VTCIX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.22% vs +11.00% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VGHAX or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 15.6% for VGHAX. Worst drawdown: VGHAX -33.6% vs VTCIX -26.0%.
Should I hold both VGHAX and VTCIX?
VGHAX and VTCIX have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and VTCIX?
VGHAX and VTCIX share 36 common holdings with a 6.9% weight overlap. Combined, they hold 875 unique securities.
Which pays a higher dividend, VGHAX or VTCIX?
VGHAX yields 6.45% while VTCIX yields 0.93%, so VGHAX currently pays the higher dividend yield.
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