VGSH vs VTCIX
Vanguard Short Term Treasury ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VGSH or VTCIX?
Short Term Government Bond against Large Cap Blend.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VGSH | VTCIX |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $34.7B | $5.2B |
| Dividend Yield | 3.82% | 0.90% |
| Holdings | 94 | 836 |
| YTD Price Return | -1.84% | +11.60% |
| 1Y Price Return | -1.99% | +15.87% |
| 3Y Price Return (annualized) | +0.06% | +19.44% |
| 5Y Price Return (annualized) | -1.28% | +10.86% |
| Volatility (annualized) | 1.9%Best | 15.9% |
| Max Drawdown | -6.8%Best | -26.0% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Blend |
| Inception | Nov 19, 2009 | Feb 24, 1999 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VGSH currently yields 3.82% and VTCIX 0.90%.
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2021 to Sep 11, 2026 (5 years).
VGSH vs VTCIX Performance
Vanguard Short Term Treasury ETF (VGSH) is an 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 VGSH's price moved -1.99% and VTCIX's +15.87%, before the income each one paid out.
Over three years, VGSH compounded at +0.06% per year against +19.44% for VTCIX; over five years the annualized figures are -1.28% and +10.86% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 1.9% for VGSH. 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 -6.8% for VGSH and -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.39. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.82% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VGSH is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 71 holdings in VGSH and 885 in VTCIX, totalling 76.6% and 99.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 71 positions we hold weights for in VGSH and 885 in VTCIX, against full books of 94 and 836.
You are not choosing between two funds in isolation.
Whichever of VGSH and VTCIX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VGSH or VTCIX?
VGSH has an expense ratio of 0.03% while VTCIX charges 0.03%. At the precision these are quoted to, they cost the same.
Which is riskier, VGSH or VTCIX?
VTCIX has been the more volatile fund at 15.9% annualized versus 1.9% for VGSH. Worst drawdown: VGSH -6.8% vs VTCIX -26.0%.
Should I hold both VGSH and VTCIX?
VGSH and VTCIX have a monthly-return correlation of 0.39, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGSH or VTCIX?
VGSH yields 3.82% while VTCIX yields 0.90%, so VGSH currently pays the higher dividend yield.
Is it better to hold VTCIX or VGSH in a taxable account?
VGSH is an ETF and VTCIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTCIX better than VGSH?
VGSH and VTCIX are close on every measure we can compare. Which one suits a particular account depends on what it is for. This is information, not a recommendation.