VGK vs VTCIX
Vanguard FTSE Europe ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 1,251 holdings.
Side-by-Side Comparison
| Metric | VGK | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $30.5B | $5.2B | |
| Dividend Yield | 2.82% | 0.93% | |
| Holdings | 1,251 | 836 | |
| YTD Return | +11.66% | +11.54% | |
| 1Y Return | +21.09% | +19.63% | |
| 3Y Return (annualized) | +19.39% | +20.07% | |
| 5Y Return (annualized) | +9.54% | +10.90% | |
| Volatility (annualized) | 18.5% | 16.1% | |
| Max Drawdown | -67.3% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Feb 24, 1999 |
VGK vs VTCIX Performance
Vanguard FTSE Europe ETF (VGK) 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 VGK returned +21.09% while VTCIX returned +19.63%. Year to date, VGK is up 11.66% versus a gain of 11.54% for VTCIX.
Over three years, VGK compounded at +19.39% per year against +20.07% for VTCIX; over five years the annualized figures are +9.54% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +3.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGK charges 0.06% per year while VTCIX charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, VGK currently yields 2.82% against 0.93% for VTCIX.
Holdings Overlap
VGK and VTCIX share 3 holdings out of 1999 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, VGK or VTCIX?
VGK has an expense ratio of 0.06% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VGK or VTCIX?
Over the past year VGK returned +21.09% vs +19.63% for VTCIX, so VGK leads on 1-year performance. Over the longest common window we track (5 years), VGK annualized +3.71% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VGK or VTCIX?
VGK has been the more volatile fund at 18.5% annualized versus 16.1% for VTCIX. Worst drawdown: VGK -67.3% vs VTCIX -26.0%.
Should I hold both VGK and VTCIX?
VGK and VTCIX have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGK and VTCIX?
VGK and VTCIX share 3 common holdings with a 0.0% weight overlap. Combined, they hold 1999 unique securities.
Which pays a higher dividend, VGK or VTCIX?
VGK yields 2.82% while VTCIX yields 0.93%, so VGK currently pays the higher dividend yield.
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