VTCIX vs VUG
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Morningstar Growth ETF
Quick Verdict
VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $5.2B | $219.5B | |
| Dividend Yield | 0.93% | 0.40% | |
| Holdings | 836 | 146 | |
| YTD Return | +12.53% | +7.81% | |
| 1Y Return | +20.38% | +15.94% | |
| 3Y Return (annualized) | +20.44% | +24.03% | |
| 5Y Return (annualized) | +11.10% | +12.48% | |
| Volatility (annualized) | 16.1% | 16.5% | |
| Max Drawdown | -26.0% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Jan 26, 2004 |
VTCIX vs VUG Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VTCIX returned +20.38% while VUG returned +15.94%. Year to date, VTCIX is up 12.53% versus a gain of 7.81% for VUG.
Over three years, VTCIX compounded at +20.44% per year against +24.03% for VUG; over five years the annualized figures are +11.10% and +12.48% respectively. Across the full 5-year window we track, VUG has the edge at +11.16% annualized vs +11.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -26.0% for VTCIX and -51.4% for VUG. 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 0.94. 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 VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTCIX currently yields 0.93% against 0.40% for VUG.
Holdings Overlap
VTCIX and VUG share 135 holdings out of 836 unique holdings combined, representing a 51.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VTCIX or VUG?
VTCIX has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTCIX or VUG?
Over the past year VTCIX returned +20.38% vs +15.94% for VUG, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.10% vs +11.16% for VUG. Past performance does not guarantee future results.
Which is riskier, VTCIX or VUG?
VUG has been the more volatile fund at 16.5% annualized versus 16.1% for VTCIX. Worst drawdown: VTCIX -26.0% vs VUG -51.4%.
Should I hold both VTCIX and VUG?
VTCIX and VUG have a monthly-return correlation of 0.94, 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 VUG?
VTCIX and VUG share 135 common holdings with a 51.8% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, VTCIX or VUG?
VTCIX yields 0.93% while VUG yields 0.40%, so VTCIX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.