VTCIX vs VTIP
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, VTCIX or VTIP?
VTCIX and VTIP are close on what we can measure.
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 | VTCIX | VTIP |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $5.2B | $19.8B |
| Dividend Yield | 0.90% | 4.16% |
| Holdings | 836 | 25 |
| YTD Price Return | +11.42% | -0.20% |
| 1Y Price Return | +14.87% | -2.55% |
| 3Y Price Return (annualized) | +19.57% | +1.39% |
| 5Y Price Return (annualized) | +11.20% | -1.28% |
| Volatility (annualized) | 15.9% | 3.3%Best |
| Max Drawdown | -26.0% | -11.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | - |
| Inception | Feb 24, 1999 | Oct 12, 2012 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VTCIX currently yields 0.90% and VTIP 4.16%.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2021 to Sep 18, 2026 (5 years).
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 an ETF from Vanguard (US). Over the past year VTCIX's price moved +14.87% and VTIP's -2.55%, before the income each one paid out.
Over three years, VTCIX compounded at +19.57% per year against +1.39% for VTIP; over five years the annualized figures are +11.20% and -1.28% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 3.3% 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 -11.4% for VTIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.45. They move together some of the time, and apart the rest.
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 0.90% against 4.16% for VTIP.
Structure and taxes
VTCIX is a mutual fund and VTIP 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
We hold position weights for 885 holdings in VTCIX and 24 in VTIP, totalling 99.4% and 89.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 885 positions we hold weights for in VTCIX and 24 in VTIP, against full books of 836 and 25.
You are not choosing between two funds in isolation.
Whichever of VTCIX and VTIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTCIX or VTIP?
VTCIX has an expense ratio of 0.03% while VTIP charges 0.03%. At the precision these are quoted to, they cost the same.
Which is riskier, VTCIX or VTIP?
VTCIX has been the more volatile fund at 15.9% annualized versus 3.3% for VTIP. Worst drawdown: VTCIX -26.0% vs VTIP -11.4%.
Should I hold both VTCIX and VTIP?
VTCIX and VTIP have a monthly-return correlation of 0.45, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTCIX or VTIP?
VTCIX yields 0.90% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
Is it better to hold VTCIX or VTIP in a taxable account?
VTIP 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 VTIP better than VTCIX?
VTCIX and VTIP are close on every measure we can compare. Which one suits a particular account depends on what it is for. This is information, not a recommendation.