VGIT vs VTCIX

Quick Verdict

VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 825 holdings.

Lower Fees: TiedHigher Returns: VTCIXMore Diversified: VTCIX

Side-by-Side Comparison

MetricVGITVTCIXWinner
Expense Ratio0.03%0.03%
AUM$42.1B$5.2B
Dividend Yield3.84%1.08%
Holdings106836
YTD Return-0.62%+13.10%
1Y Return+1.32%+22.40%
3Y Return (annualized)+3.60%+19.72%
5Y Return (annualized)-0.12%+11.39%
Volatility (annualized)4.3%16.1%
Max Drawdown-17.2%-26.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Feb 24, 1999

VGIT vs VTCIX Performance

Vanguard Intermediate Term Treasury ETF (VGIT) 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 VGIT returned +1.32% while VTCIX returned +22.40%. Year to date, VGIT is down 0.62% versus a gain of 13.10% for VTCIX.

Over three years, VGIT compounded at +3.60% per year against +19.72% for VTCIX; over five years the annualized figures are -0.12% and +11.39% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.39% annualized vs +0.75%. 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 4.3% for VGIT. 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 -17.2% for VGIT 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGIT charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGIT currently yields 3.84% against 1.08% for VTCIX.

Holdings Overlap

0.0%overlap

VGIT and VTCIX share 0 holdings out of 909 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, VGIT or VTCIX?

VGIT 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, VGIT or VTCIX?

Over the past year VGIT returned +1.32% vs +22.40% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VGIT annualized +0.75% vs +11.39% for VTCIX. Past performance does not guarantee future results.

Which is riskier, VGIT or VTCIX?

VTCIX has been the more volatile fund at 16.1% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VTCIX -26.0%.

Should I hold both VGIT and VTCIX?

VGIT and VTCIX have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGIT and VTCIX?

VGIT and VTCIX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 909 unique securities.

Which pays a higher dividend, VGIT or VTCIX?

VGIT yields 3.84% while VTCIX yields 1.08%, so VGIT currently pays the higher dividend yield.

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