VTCIX vs VWIUX
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VWIUX offers more diversification with 15,066 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VWIUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $5.2B | $86.4B | |
| Dividend Yield | 0.93% | 3.13% | |
| Holdings | 836 | 15,066 | |
| YTD Return | +12.08% | -1.81% | |
| 1Y Return | +20.64% | +0.89% | |
| 3Y Return (annualized) | +20.37% | +0.67% | |
| 5Y Return (annualized) | +10.89% | -1.81% | |
| Volatility (annualized) | 16.1% | 5.4% | |
| Max Drawdown | -26.0% | -16.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Feb 24, 1999 | Feb 12, 2001 |
VTCIX vs VWIUX Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VTCIX returned +20.64% while VWIUX returned +0.89%. Year to date, VTCIX is up 12.08% versus a loss of 1.81% for VWIUX.
Over three years, VTCIX compounded at +20.37% per year against +0.67% for VWIUX; over five years the annualized figures are +10.89% and -1.81% respectively. Across the full 5-year window we track, VTCIX has the edge at +10.89% annualized vs -1.81%. 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 5.4% for VWIUX. 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 -16.0% for VWIUX. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VWIUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VTCIX currently yields 0.93% against 3.13% for VWIUX.
Holdings Overlap
VTCIX and VWIUX share 0 holdings out of 2588 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 VWIUX?
VTCIX has an expense ratio of 0.03% while VWIUX charges 0.09%. VTCIX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTCIX or VWIUX?
Over the past year VTCIX returned +20.64% vs +0.89% for VWIUX, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +10.89% vs -1.81% for VWIUX. Past performance does not guarantee future results.
Which is riskier, VTCIX or VWIUX?
VTCIX has been the more volatile fund at 16.1% annualized versus 5.4% for VWIUX. Worst drawdown: VTCIX -26.0% vs VWIUX -16.0%.
Should I hold both VTCIX and VWIUX?
VTCIX and VWIUX have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and VWIUX?
VTCIX and VWIUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2588 unique securities.
Which pays a higher dividend, VTCIX or VWIUX?
VTCIX yields 0.93% while VWIUX yields 3.13%, so VWIUX currently pays the higher dividend yield.
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