VOT vs VTCIX
Vanguard Morningstar Mid-Cap Growth ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VOT | VTCIX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $19.1B | $5.2B | |
| Dividend Yield | 0.62% | 0.93% | |
| Holdings | 129 | 836 | |
| YTD Return | +8.96% | +11.54% | |
| 1Y Return | +8.44% | +19.63% | |
| 3Y Return (annualized) | +16.15% | +20.07% | |
| 5Y Return (annualized) | +5.39% | +10.90% | |
| Volatility (annualized) | 18.5% | 16.1% | |
| Max Drawdown | -60.3% | -26.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Feb 24, 1999 |
VOT vs VTCIX Performance
Vanguard Morningstar Mid-Cap Growth ETF (VOT) 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 VOT returned +8.44% while VTCIX returned +19.63%. Year to date, VOT is up 8.96% versus a gain of 11.54% for VTCIX.
Over three years, VOT compounded at +16.15% per year against +20.07% for VTCIX; over five years the annualized figures are +5.39% and +10.90% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.90% annualized vs +9.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOT has been the more volatile fund, with annualized monthly volatility of 18.5% 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 VOT 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
VOT 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, VOT currently yields 0.62% against 0.93% for VTCIX.
Holdings Overlap
VOT and VTCIX share 110 holdings out of 836 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOT or VTCIX?
VOT 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, VOT or VTCIX?
Over the past year VOT returned +8.44% vs +19.63% for VTCIX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VOT annualized +9.59% vs +10.90% for VTCIX. Past performance does not guarantee future results.
Which is riskier, VOT or VTCIX?
VOT has been the more volatile fund at 18.5% annualized versus 16.1% for VTCIX. Worst drawdown: VOT -60.3% vs VTCIX -26.0%.
Should I hold both VOT and VTCIX?
VOT 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 VOT and VTCIX?
VOT and VTCIX share 110 common holdings with a 7.1% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, VOT or VTCIX?
VOT yields 0.62% while VTCIX yields 0.93%, so VTCIX currently pays the higher dividend yield.
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