VIG vs VTCIX
Vanguard Dividend Appreciation ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VIG | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $111.4B | $5.2B | |
| Dividend Yield | 1.49% | 0.93% | |
| Holdings | 335 | 836 | |
| YTD Return | +12.14% | +13.62% | |
| 1Y Return | +18.72% | +20.53% | |
| 3Y Return (annualized) | +16.93% | +20.45% | |
| 5Y Return (annualized) | +10.54% | +11.49% | |
| Volatility (annualized) | 13.3% | 16.1% | |
| Max Drawdown | -48.2% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 21, 2006 | Feb 24, 1999 |
VIG vs VTCIX Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +18.72% while VTCIX returned +20.53%. Year to date, VIG is up 12.14% versus a gain of 13.62% for VTCIX.
Over three years, VIG compounded at +16.93% per year against +20.45% for VTCIX; over five years the annualized figures are +10.54% and +11.49% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.49% annualized vs +8.68%. 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 13.3% for VIG. 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 -48.2% for VIG 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VIG charges 0.04% per year while VTCIX charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIG currently yields 1.49% against 0.93% for VTCIX.
Holdings Overlap
VIG and VTCIX share 211 holdings out of 945 unique holdings combined, representing a 39.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VIG or VTCIX?
VIG has an expense ratio of 0.04% while VTCIX charges 0.03%. VTCIX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VIG or VTCIX?
Over the past year VIG returned +18.72% vs +20.53% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VIG annualized +8.68% vs +11.49% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VIG or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VTCIX -26.0%.
Should I hold both VIG and VTCIX?
VIG and VTCIX have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VIG and VTCIX?
VIG and VTCIX share 211 common holdings with a 39.5% weight overlap. Combined, they hold 945 unique securities.
Which pays a higher dividend, VIG or VTCIX?
VIG yields 1.49% while VTCIX yields 0.93%, so VIG currently pays the higher dividend yield.
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