VTCIX vs VWO
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard FTSE Emerging Markets ETF
Which is better, VTCIX or VWO?
VTCIX has been ahead.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window.
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 | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $5.2B | $122.0B |
| Dividend Yield | 0.90% | 2.29% |
| Holdings | 836 | 6,334 |
| YTD Price Return | +11.60%Best | +9.87% |
| 1Y Price Return | +15.87%Best | +12.64% |
| 3Y Price Return (annualized) | +19.44%Best | +14.18% |
| 5Y Price Return (annualized) | +11.04%Best | +2.75% |
| Volatility (annualized) | 15.9% | 15.0%Best |
| Max Drawdown | -26.0%Best | -32.5% |
| $10,000 over 5 years | $16,881Best | $11,453 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 24, 1999 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTCIX. Both funds are measured the same way, so the comparison holds. VTCIX yields 0.90% and VWO 2.29% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2021 to Sep 11, 2026 (5 years).
VTCIX vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
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 an ETF from Vanguard (US). Over the past year VTCIX returned +15.87% while VWO returned +12.64%. Year to date, VTCIX is up 11.60% versus a gain of 9.87% for VWO.
Over three years, VTCIX compounded at +19.44% per year against +14.18% for VWO; over five years the annualized figures are +11.04% and +2.75% 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 15.0% for VWO. 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 -32.5% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
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 0.90% against 2.29% for VWO.
Structure and taxes
VTCIX is a mutual fund and VWO 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
At least 0.1% of VTCIX's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 88.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 884 positions we hold weights for in VTCIX and 4,694 in VWO, against full books of 836 and 6,334.
You are not choosing between two funds in isolation.
Whichever of VTCIX and VWO 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 VWO?
VTCIX has an expense ratio of 0.03% while VWO charges 0.06%. VTCIX is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VTCIX or VWO?
Over the past year VTCIX returned +15.87% vs +12.64% for VWO, so VTCIX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTCIX or VWO?
VTCIX has been the more volatile fund at 15.9% annualized versus 15.0% for VWO. Worst drawdown: VTCIX -26.0% vs VWO -32.5%.
Should I hold both VTCIX and VWO?
VTCIX and VWO have a monthly-return correlation of 0.64, 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 VWO?
VTCIX yields 0.90% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is it better to hold VTCIX or VWO in a taxable account?
VWO 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 VWO better than VTCIX?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.