VO vs VTCIX
Vanguard Morningstar Mid-Cap 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 | VO | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $106.6B | $5.2B | |
| Dividend Yield | 1.32% | 0.93% | |
| Holdings | 289 | 836 | |
| YTD Return | +14.20% | +11.54% | |
| 1Y Return | +18.01% | +19.63% | |
| 3Y Return (annualized) | +17.54% | +20.07% | |
| 5Y Return (annualized) | +8.07% | +10.90% | |
| Volatility (annualized) | 16.9% | 16.1% | |
| Max Drawdown | -60.3% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Feb 24, 1999 |
VO vs VTCIX Performance
Vanguard Morningstar Mid-Cap ETF (VO) 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 VO returned +18.01% while VTCIX returned +19.63%. Year to date, VO is up 14.20% versus a gain of 11.54% for VTCIX.
Over three years, VO compounded at +17.54% per year against +20.07% for VTCIX; over five years the annualized figures are +8.07% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +9.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 16.1% for VTCIX. 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 -60.3% for VO 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
VO charges 0.03% per year while VTCIX charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VO currently yields 1.32% against 0.93% for VTCIX.
Holdings Overlap
VO and VTCIX share 258 holdings out of 846 unique holdings combined, representing a 16.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VO or VTCIX?
VO 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, VO or VTCIX?
Over the past year VO returned +18.01% vs +19.63% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VO annualized +9.21% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VO or VTCIX?
VO has been the more volatile fund at 16.9% annualized versus 16.1% for VTCIX. Worst drawdown: VO -60.3% vs VTCIX -26.0%.
Should I hold both VO and VTCIX?
VO 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 VO and VTCIX?
VO and VTCIX share 258 common holdings with a 16.5% weight overlap. Combined, they hold 846 unique securities.
Which pays a higher dividend, VO or VTCIX?
VO yields 1.32% while VTCIX yields 0.93%, so VO currently pays the higher dividend yield.
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