VIITX vs VTCIX
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VIITX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.
Side-by-Side Comparison
| Metric | VIITX | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.03% | |
| AUM | - | $5.2B | |
| Dividend Yield | 4.59% | 0.93% | |
| Holdings | 2,599 | 836 | |
| YTD Return | -1.99% | +12.08% | |
| 1Y Return | -1.44% | +20.64% | |
| 3Y Return (annualized) | +0.70% | +20.37% | |
| 5Y Return (annualized) | -2.33% | +11.00% | |
| Volatility (annualized) | 4.2% | 16.1% | |
| Max Drawdown | -15.0% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 1997 | Feb 24, 1999 |
VIITX vs VTCIX Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year VIITX returned -1.44% while VTCIX returned +20.64%. Year to date, VIITX is down 1.99% versus a gain of 12.08% for VTCIX.
Over three years, VIITX compounded at +0.70% per year against +20.37% for VTCIX; over five years the annualized figures are -2.33% and +11.00% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs -2.33%. 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 4.2% for VIITX. 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 -15.0% for VIITX 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIITX charges 0.02% per year while VTCIX charges 0.03%. On a $10,000 position that is $2 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIITX currently yields 4.59% against 0.93% for VTCIX.
Holdings Overlap
VIITX and VTCIX share 3 holdings out of 2007 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VIITX or VTCIX?
VIITX has an expense ratio of 0.02% while VTCIX charges 0.03%. VIITX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VIITX or VTCIX?
Over the past year VIITX returned -1.44% vs +20.64% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.33% vs +11.00% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VIITX or VTCIX?
VTCIX has been the more volatile fund at 16.1% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs VTCIX -26.0%.
Should I hold both VIITX and VTCIX?
VIITX and VTCIX have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and VTCIX?
VIITX and VTCIX share 3 common holdings with a 0.3% weight overlap. Combined, they hold 2007 unique securities.
Which pays a higher dividend, VIITX or VTCIX?
VIITX yields 4.59% while VTCIX yields 0.93%, so VIITX currently pays the higher dividend yield.
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