VIG vs VTCIX
Vanguard Dividend Appreciation ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VIG or VTCIX?
VTCIX has been ahead.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. VIG is less concentrated, with 32.0% of the fund in its ten largest positions against 33.3%.
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 | VIG | VTCIX |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $111.4B | $5.2B |
| Dividend Yield | 1.49% | 0.93% |
| Holdings | 335 | 836 |
| YTD Price Return | +9.71% | +12.59%Best |
| 1Y Price Return | +14.28% | +18.50%Best |
| 3Y Price Return (annualized) | +14.29% | +19.49%Best |
| 5Y Price Return (annualized) | +8.48% | +10.85%Best |
| Volatility (annualized) | 13.6%Best | 15.9% |
| Max Drawdown | -21.5%Best | -26.0% |
| $10,000 over 5 years | $15,023 | $16,737Best |
| Top 10 Weight | 32.0%Best | 33.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 21, 2006 | Feb 24, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTCIX. Both funds are measured the same way, so the comparison holds. VIG yields 1.49% and VTCIX 0.93% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VIG vs VTCIX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VIG vs VTCIX Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +14.28% while VTCIX returned +18.50%. Year to date, VIG is up 9.71% versus a gain of 12.59% for VTCIX.
Over three years, VIG compounded at +14.29% per year against +19.49% for VTCIX; over five years the annualized figures are +8.48% and +10.85% 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 13.6% 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 -21.5% for VIG 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 0.93. 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.
Structure and taxes
VTCIX is a mutual fund and VIG 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
96.3% of VIG's money is in holdings VTCIX also owns. 40.2% of VTCIX's money is in holdings VIG also owns.
Most of VIG is already inside VTCIX. Owning both mostly buys the same companies twice.
215 positions in common, counted across the 331 positions we hold weights for in VIG and 885 in VTCIX, against full books of 335 and 836.
What only one of them owns
Our book lists 558 positions for VTCIX that do not appear in our book for VIG (58.5% of the fund), and 96 for VIG that do not appear in VTCIX (3.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VIG | Weight in VTCIX | Difference |
|---|---|---|---|
| AAPLApple, Inc | 4.22% | 6.06% | 1.84% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 3.53% | 3.91% | 0.38% |
| AVGOBroadcom Inc | 4.55% | 2.51% | 2.04% |
| LLYEli Lilly & Co. | 4.15% | 1.40% | 2.75% |
| JPMJpmorgan Chase | 3.57% | 1.30% | 2.27% |
| JNJJohnson & Johnson - Common | 2.68% | 0.85% | 1.83% |
| XOMExxon Mobil Corp. | 2.48% | 0.82% | 1.66% |
| LRCXLrcx Uw Equity | 2.37% | 0.79% | 1.58% |
| VVisa Inc Class A | 2.32% | 0.82% | 1.50% |
| WMTWalmart, Inc. | 2.17% | 0.73% | 1.44% |
96.3% of VIG is already inside VTCIX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $1 a year on a $10,000 investment.
Which performed better, VIG or VTCIX?
Over the past year VIG returned +14.28% vs +18.50% for VTCIX, so VTCIX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or VTCIX?
VTCIX has been the more volatile fund at 15.9% annualized versus 13.6% for VIG. Worst drawdown: VIG -21.5% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VIG and VTCIX?
96.3% of VIG's money is in holdings VTCIX also owns. 40.2% of VTCIX's is in holdings VIG also owns. They hold 215 positions in common, counted across the 331 positions we hold weights for in VIG and 885 in VTCIX.
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.
Is it better to hold VTCIX or VIG in a taxable account?
VIG 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 VIG?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. VIG is less concentrated, with 32.0% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.