VOE vs VTCIX
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VOE or VTCIX?
Mid Cap Value against Large Cap Blend.
VTCIX has a lower expense ratio. VOE led over 1Y, VTCIX over 3Y, 5Y and the full window. VOE is less concentrated, with 12.7% 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 | VOE | VTCIX |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $23.9B | $5.2B |
| Dividend Yield | 1.80% | 0.90% |
| Holdings | 176 | 836 |
| YTD Price Return | +14.74%Best | +10.67% |
| 1Y Price Return | +17.75%Best | +15.96% |
| 3Y Price Return (annualized) | +14.66% | +18.89%Best |
| 5Y Price Return (annualized) | +7.42% | +10.73%Best |
| Volatility (annualized) | 16.3% | 15.9%Best |
| Max Drawdown | -20.5%Best | -26.0% |
| $10,000 over 5 years | $14,303 | $16,647Best |
| Top 10 Weight | 12.7%Best | 33.3% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Blend |
| Inception | Aug 17, 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. VOE yields 1.80% and VTCIX 0.90% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 10, 2026 (5 years).
VOE 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.
VOE vs VTCIX Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) 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 VOE returned +17.75% while VTCIX returned +15.96%. Year to date, VOE is up 14.74% versus a gain of 10.67% for VTCIX.
Over three years, VOE compounded at +14.66% per year against +18.89% for VTCIX; over five years the annualized figures are +7.42% and +10.73% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 16.3% compared with 15.9% 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 -20.5% for VOE 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOE charges 0.05% per year while VTCIX charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VOE currently yields 1.80% against 0.90% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VOE 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
93.0% of VOE's money is in holdings VTCIX also owns. 9.3% of VTCIX's money is in holdings VOE also owns.
Most of VOE is already inside VTCIX. Owning both mostly buys the same companies twice.
157 positions in common, counted across the 169 positions we hold weights for in VOE and 884 in VTCIX, against full books of 176 and 836.
What only one of them owns
Our book lists 591 positions for VTCIX that do not appear in our book for VOE (89.3% of the fund), and 10 for VOE that do not appear in VTCIX (4.9%).
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 VOE | Weight in VTCIX | Difference |
|---|---|---|---|
| CMICummins Inc. | 1.70% | 0.12% | 1.58% |
| VLOValero Energy Corp. | 1.34% | 0.14% | 1.20% |
| MPCMarathon Petroleum Corp. | 1.29% | 0.16% | 1.13% |
| URIUnited Rentals Inc. | 1.23% | 0.10% | 1.13% |
| GMGeneral Motors Co. | 1.20% | 0.11% | 1.09% |
| SLBSchlumberger Nv. | 1.20% | 0.11% | 1.09% |
| PSXPhillips 66 | 1.17% | 0.09% | 1.08% |
| SPGSimon Property Group Inc | 1.19% | 0.06% | 1.13% |
| PCARPaccar Inc. | 1.09% | 0.14% | 0.95% |
| DLRDigital Realty Trust Inc. | 1.09% | 0.12% | 0.97% |
93.0% of VOE 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, VOE or VTCIX?
VOE has an expense ratio of 0.05% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VOE or VTCIX?
Over the past year VOE returned +17.75% vs +15.96% for VTCIX, so VOE leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOE or VTCIX?
VOE has been the more volatile fund at 16.3% annualized versus 15.9% for VTCIX. Worst drawdown: VOE -20.5% vs VTCIX -26.0%.
Should I hold both VOE and VTCIX?
VOE and VTCIX have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VOE and VTCIX?
93.0% of VOE's money is in holdings VTCIX also owns. 9.3% of VTCIX's is in holdings VOE also owns. They hold 157 positions in common, counted across the 169 positions we hold weights for in VOE and 884 in VTCIX.
Which pays a higher dividend, VOE or VTCIX?
VOE yields 1.80% while VTCIX yields 0.90%, so VOE currently pays the higher dividend yield.
Is it better to hold VTCIX or VOE in a taxable account?
VOE 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 VOE?
VTCIX has a lower expense ratio. VOE led over 1Y, VTCIX over 3Y, 5Y and the full window. VOE is less concentrated, with 12.7% 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.