VTCIX vs VXF
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Extended Market ETF
Quick Verdict
VTCIX has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $5.2B | $30.5B | |
| Dividend Yield | 0.93% | 1.03% | |
| Holdings | 836 | 3,376 | |
| YTD Return | +13.62% | +19.07% | |
| 1Y Return | +20.53% | +26.16% | |
| 3Y Return (annualized) | +20.45% | +20.39% | |
| 5Y Return (annualized) | +11.49% | +7.51% | |
| Volatility (annualized) | 16.1% | 18.8% | |
| Max Drawdown | -26.0% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Dec 27, 2001 |
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 a ETF from Vanguard (US). Over the past year VTCIX returned +20.53% while VXF returned +26.16%. Year to date, VTCIX is up 13.62% versus a gain of 19.07% for VXF.
Over three years, VTCIX compounded at +20.45% per year against +20.39% for VXF; over five years the annualized figures are +11.49% and +7.51% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.49% annualized vs +9.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -59.4% for VXF. 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 0.90. 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.
Holdings Overlap
VTCIX and VXF share 327 holdings out of 3792 unique holdings combined, representing a 6.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VTCIX or VXF?
Over the past year VTCIX returned +20.53% vs +26.16% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.49% vs +9.14% for VXF. Past performance does not guarantee future results.
Which is riskier, VTCIX or VXF?
VXF has been the more volatile fund at 18.8% annualized versus 16.1% for VTCIX. Worst drawdown: VTCIX -26.0% vs VXF -59.4%.
Should I hold both VTCIX and VXF?
VTCIX and VXF have a monthly-return correlation of 0.90, 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 VXF?
VTCIX and VXF share 327 common holdings with a 6.3% weight overlap. Combined, they hold 3792 unique securities.
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.
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