VTCIX vs VXF
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Extended Market ETF
Which is better, VTCIX or VXF?
Large Cap Blend against Mid Cap Blend.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.
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 | VXF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.05% |
| AUM | $5.2B | $30.5B |
| Dividend Yield | 0.93% | 1.03% |
| Holdings | 836 | 3,385 |
| YTD Price Return | +12.59% | +14.66%Best |
| 1Y Price Return | +18.50%Best | +17.45% |
| 3Y Price Return (annualized) | +19.49%Best | +17.29% |
| 5Y Price Return (annualized) | +10.85%Best | +4.97% |
| Volatility (annualized) | 15.9%Best | 20.2% |
| Max Drawdown | -26.0%Best | -36.8% |
| $10,000 over 5 years | $16,737Best | $12,745 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Feb 24, 1999 | Dec 27, 2001 |
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 0.93% and VXF 1.03% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VTCIX vs VXF 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 VXF Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Extended Market ETF (VXF) is an ETF from Vanguard (US). Over the past year VTCIX returned +18.50% while VXF returned +17.45%. Year to date, VTCIX is up 12.59% versus a gain of 14.66% for VXF.
Over three years, VTCIX compounded at +19.49% per year against +17.29% for VXF; over five years the annualized figures are +10.85% and +4.97% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 15.9% 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 -36.8% for VXF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. 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 VXF charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VTCIX currently yields 0.93% against 1.03% for VXF.
Structure and taxes
VTCIX is a mutual fund and VXF 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 7.5% of VTCIX's money is in holdings VXF also owns.
Stated as a floor: for VXF, our book for it covers 94.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VTCIX and VXF share little of their money.
368 positions in common, counted across the 885 positions we hold weights for in VTCIX and 3,295 in VXF, against full books of 836 and 3,385.
Top Shared Holdings
| Stock | Weight in VTCIX | Weight in VXF | Difference |
|---|---|---|---|
| SNOWSnowflake Inc | 0.13% | 1.00% | 0.87% |
| BEBloom Energy Corporation Com Cl A | 0.11% | 0.90% | 0.79% |
| NETCloudflare Inc (180 Day Lockup) | 0.11% | 0.89% | 0.78% |
| ALABAstera Labs Inc | 0.09% | 0.73% | 0.64% |
| LNGCheniere Energy Inc | 0.14% | 0.57% | 0.43% |
| RKLBRocket Lab Corporation | 0.08% | 0.59% | 0.51% |
| MKLMarkel Corp | 0.37% | 0.28% | 0.09% |
| CRDOCredo Technology Group Holding Ltd Ordinary Shares | 0.06% | 0.50% | 0.44% |
| FERGFerguson Enterprises Inc 0.00 | 0.03% | 0.52% | 0.49% |
| ALNYAlnylam Pharmaceuticals Inc. | 0.06% | 0.45% | 0.39% |
You are not choosing between two funds in isolation.
Whichever of VTCIX and VXF 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 VXF?
VTCIX has an expense ratio of 0.03% while VXF charges 0.05%. VTCIX is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VTCIX or VXF?
Over the past year VTCIX returned +18.50% vs +17.45% for VXF, 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 VXF?
VXF has been the more volatile fund at 20.2% annualized versus 15.9% for VTCIX. Worst drawdown: VTCIX -26.0% vs VXF -36.8%.
Should I hold both VTCIX and VXF?
VTCIX and VXF have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VTCIX and VXF?
At least 7.5% of VTCIX's money is in holdings VXF also owns. Our book for VXF is partial, so the real figure is this or higher. They hold 368 positions in common, counted across the 885 positions we hold weights for in VTCIX and 3,295 in VXF.
Which pays a higher dividend, VTCIX or VXF?
VTCIX yields 0.93% while VXF yields 1.03%, so VXF currently pays the higher dividend yield.
Is it better to hold VTCIX or VXF in a taxable account?
VXF 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 VXF better than VTCIX?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.