VTCIX vs VWO
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VTCIX has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $5.2B | $122.0B | |
| Dividend Yield | 0.93% | 2.39% | |
| Holdings | 836 | 6,334 | |
| YTD Return | +12.08% | +10.18% | |
| 1Y Return | +20.64% | +20.99% | |
| 3Y Return (annualized) | +20.37% | +18.45% | |
| 5Y Return (annualized) | +11.00% | +7.14% | |
| Volatility (annualized) | 16.1% | 20.1% | |
| Max Drawdown | -26.0% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Mar 4, 2005 |
VTCIX vs VWO Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VTCIX returned +20.64% while VWO returned +20.99%. Year to date, VTCIX is up 12.08% versus a gain of 10.18% for VWO.
Over three years, VTCIX compounded at +20.37% per year against +18.45% for VWO; over five years the annualized figures are +11.00% and +7.14% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +4.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VTCIX currently yields 0.93% against 2.39% for VWO.
Holdings Overlap
VTCIX and VWO share 1 holdings out of 4808 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTCIX | Weight in VWO | Difference |
|---|---|---|---|
| EGP | 0.00% | 0.01% | 0.01% |
Frequently Asked Questions
Which is cheaper, VTCIX or VWO?
VTCIX has an expense ratio of 0.03% while VWO charges 0.06%. VTCIX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTCIX or VWO?
Over the past year VTCIX returned +20.64% vs +20.99% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.00% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VTCIX or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.1% for VTCIX. Worst drawdown: VTCIX -26.0% vs VWO -68.3%.
Should I hold both VTCIX and VWO?
VTCIX and VWO have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and VWO?
VTCIX and VWO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 4808 unique securities.
Which pays a higher dividend, VTCIX or VWO?
VTCIX yields 0.93% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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