VGSH vs VTCIX
Vanguard Short Term Treasury ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VGSH | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $34.7B | $5.2B | |
| Dividend Yield | 3.85% | 0.93% | |
| Holdings | 94 | 836 | |
| YTD Return | +1.11% | +12.08% | |
| 1Y Return | +2.94% | +20.64% | |
| 3Y Return (annualized) | +4.40% | +20.37% | |
| 5Y Return (annualized) | +1.96% | +11.00% | |
| Volatility (annualized) | 1.4% | 16.1% | |
| Max Drawdown | -6.7% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Feb 24, 1999 |
VGSH vs VTCIX Performance
Vanguard Short Term Treasury ETF (VGSH) 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 VGSH returned +2.94% while VTCIX returned +20.64%. Year to date, VGSH is up 1.11% versus a gain of 12.08% for VTCIX.
Over three years, VGSH compounded at +4.40% per year against +20.37% for VTCIX; over five years the annualized figures are +1.96% and +11.00% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +0.73%. 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 1.4% 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 -6.7% for VGSH 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.85% against 0.93% for VTCIX.
Holdings Overlap
VGSH and VTCIX share 0 holdings out of 841 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, VGSH or VTCIX?
VGSH 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, VGSH or VTCIX?
Over the past year VGSH returned +2.94% vs +20.64% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VGSH annualized +0.73% vs +11.00% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VGSH or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs VTCIX -26.0%.
Should I hold both VGSH and VTCIX?
VGSH and VTCIX have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGSH and VTCIX?
VGSH and VTCIX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 841 unique securities.
Which pays a higher dividend, VGSH or VTCIX?
VGSH yields 3.85% while VTCIX yields 0.93%, so VGSH currently pays the higher dividend yield.
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