VTCIX vs VTIP
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 825 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $5.2B | $19.3B | |
| Dividend Yield | 1.08% | 3.60% | |
| Holdings | 836 | 27 | |
| YTD Return | +13.06% | +1.87% | |
| 1Y Return | +21.79% | +2.95% | |
| 3Y Return (annualized) | +20.01% | +5.52% | |
| 5Y Return (annualized) | +11.26% | +3.34% | |
| Volatility (annualized) | 16.1% | 2.4% | |
| Max Drawdown | -26.0% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Feb 24, 1999 | Oct 12, 2012 |
VTCIX vs VTIP Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VTCIX returned +21.79% while VTIP returned +2.95%. Year to date, VTCIX is up 13.06% versus a gain of 1.87% for VTIP.
Over three years, VTCIX compounded at +20.01% per year against +5.52% for VTIP; over five years the annualized figures are +11.26% and +3.34% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.26% annualized vs +1.58%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VTIP charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTCIX currently yields 1.08% against 3.60% for VTIP.
Holdings Overlap
VTCIX and VTIP share 0 holdings out of 848 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTCIX or VTIP?
VTCIX has an expense ratio of 0.03% while VTIP charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTCIX or VTIP?
Over the past year VTCIX returned +21.79% vs +2.95% for VTIP, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.26% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VTCIX or VTIP?
VTCIX has been the more volatile fund at 16.1% annualized versus 2.4% for VTIP. Worst drawdown: VTCIX -26.0% vs VTIP -7.1%.
Should I hold both VTCIX and VTIP?
VTCIX and VTIP have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and VTIP?
VTCIX and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 848 unique securities.
Which pays a higher dividend, VTCIX or VTIP?
VTCIX yields 1.08% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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