VTCIX vs VTI
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $5.2B | $666.9B | |
| Dividend Yield | 0.93% | 1.07% | |
| Holdings | 836 | 3,543 | |
| YTD Return | +12.08% | +13.14% | |
| 1Y Return | +20.64% | +22.35% | |
| 3Y Return (annualized) | +20.37% | +21.83% | |
| 5Y Return (annualized) | +11.00% | +12.01% | |
| Volatility (annualized) | 16.1% | 15.3% | |
| Max Drawdown | -26.0% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | May 24, 2001 |
VTCIX vs VTI Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VTCIX returned +20.64% while VTI returned +22.35%. Year to date, VTCIX is up 12.08% versus a gain of 13.14% for VTI.
Over three years, VTCIX compounded at +20.37% per year against +21.83% for VTI; over five years the annualized figures are +11.00% and +12.01% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +8.09%. 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 15.3% for VTI. 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 -26.0% for VTCIX and -56.6% for VTI. 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTCIX currently yields 0.93% against 1.07% for VTI.
Holdings Overlap
VTCIX and VTI share 694 holdings out of 2918 unique holdings combined, representing a 80.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VTCIX or VTI?
VTCIX has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTCIX or VTI?
Over the past year VTCIX returned +20.64% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.00% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, VTCIX or VTI?
VTCIX has been the more volatile fund at 16.1% annualized versus 15.3% for VTI. Worst drawdown: VTCIX -26.0% vs VTI -56.6%.
Should I hold both VTCIX and VTI?
VTCIX and VTI have a monthly-return correlation of 1.00, 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 VTCIX and VTI?
VTCIX and VTI share 694 common holdings with a 80.0% weight overlap. Combined, they hold 2918 unique securities.
Which pays a higher dividend, VTCIX or VTI?
VTCIX yields 0.93% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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