VOE vs VTCIX
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VOE delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VOE | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $23.9B | $5.2B | |
| Dividend Yield | 1.81% | 0.93% | |
| Holdings | 176 | 836 | |
| YTD Return | +17.73% | +11.54% | |
| 1Y Return | +24.83% | +19.63% | |
| 3Y Return (annualized) | +18.09% | +20.07% | |
| 5Y Return (annualized) | +10.27% | +10.90% | |
| Volatility (annualized) | 17.6% | 16.1% | |
| Max Drawdown | -63.4% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Feb 24, 1999 |
VOE vs VTCIX Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) 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 VOE returned +24.83% while VTCIX returned +19.63%. Year to date, VOE is up 17.73% versus a gain of 11.54% for VTCIX.
Over three years, VOE compounded at +18.09% per year against +20.07% for VTCIX; over five years the annualized figures are +10.27% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +7.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.4% for VOE 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 0.83. 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 1.81% against 0.93% for VTCIX.
Holdings Overlap
VOE and VTCIX share 158 holdings out of 836 unique holdings combined, representing a 10.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VOE or VTCIX?
Over the past year VOE returned +24.83% vs +19.63% for VTCIX, so VOE leads on 1-year performance. Over the longest common window we track (5 years), VOE annualized +7.97% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VOE or VTCIX?
VOE has been the more volatile fund at 17.6% annualized versus 16.1% for VTCIX. Worst drawdown: VOE -63.4% vs VTCIX -26.0%.
Should I hold both VOE and VTCIX?
VOE and VTCIX have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOE and VTCIX?
VOE and VTCIX share 158 common holdings with a 10.0% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, VOE or VTCIX?
VOE yields 1.81% while VTCIX yields 0.93%, so VOE currently pays the higher dividend yield.
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