VTCIX vs VV
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Morningstar Large-Cap ETF
Quick Verdict
VV delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $5.2B | $52.6B | |
| Dividend Yield | 0.93% | 1.03% | |
| Holdings | 836 | 437 | |
| YTD Return | +13.62% | +14.15% | |
| 1Y Return | +20.53% | +21.53% | |
| 3Y Return (annualized) | +20.45% | +22.44% | |
| 5Y Return (annualized) | +11.49% | +12.89% | |
| Volatility (annualized) | 16.1% | 14.8% | |
| Max Drawdown | -26.0% | -56.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Jan 27, 2004 |
VTCIX vs VV Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Large-Cap ETF (VV) is a ETF from Vanguard (US). Over the past year VTCIX returned +20.53% while VV returned +21.53%. Year to date, VTCIX is up 13.62% versus a gain of 14.15% for VV.
Over three years, VTCIX compounded at +20.45% per year against +22.44% for VV; over five years the annualized figures are +11.49% and +12.89% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.49% annualized vs +9.54%. 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 14.8% for VV. 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 -56.0% for VV. 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 0.99. 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 VV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTCIX currently yields 0.93% against 1.03% for VV.
Holdings Overlap
VTCIX and VV share 406 holdings out of 850 unique holdings combined, representing a 83.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VTCIX or VV?
VTCIX has an expense ratio of 0.03% while VV charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTCIX or VV?
Over the past year VTCIX returned +20.53% vs +21.53% for VV, so VV leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.49% vs +9.54% for VV. Past performance does not guarantee future results.
Which is riskier, VTCIX or VV?
VTCIX has been the more volatile fund at 16.1% annualized versus 14.8% for VV. Worst drawdown: VTCIX -26.0% vs VV -56.0%.
Should I hold both VTCIX and VV?
VTCIX and VV have a monthly-return correlation of 0.99, 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 VV?
VTCIX and VV share 406 common holdings with a 83.0% weight overlap. Combined, they hold 850 unique securities.
Which pays a higher dividend, VTCIX or VV?
VTCIX yields 0.93% while VV yields 1.03%, so VV currently pays the higher dividend yield.
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