VTCIX vs VXUS
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard Total International Stock ETF
Quick Verdict
VTCIX has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VTCIX | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $5.2B | $156.5B | |
| Dividend Yield | 1.08% | 2.60% | |
| Holdings | 836 | 8,747 | |
| YTD Return | +13.06% | +14.19% | |
| 1Y Return | +21.79% | +27.38% | |
| 3Y Return (annualized) | +20.01% | +19.53% | |
| 5Y Return (annualized) | +11.26% | +9.03% | |
| Volatility (annualized) | 16.1% | 15.1% | |
| Max Drawdown | -26.0% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Jan 26, 2011 |
VTCIX vs VXUS Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTCIX returned +21.79% while VXUS returned +27.38%. Year to date, VTCIX is up 13.06% versus a gain of 14.19% for VXUS.
Over three years, VTCIX compounded at +20.01% per year against +19.53% for VXUS; over five years the annualized figures are +11.26% and +9.03% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.26% annualized vs +4.83%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VXUS 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 1.08% against 2.60% for VXUS.
Holdings Overlap
VTCIX and VXUS share 8 holdings out of 8678 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTCIX or VXUS?
VTCIX has an expense ratio of 0.03% while VXUS 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 VXUS?
Over the past year VTCIX returned +21.79% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.26% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTCIX or VXUS?
VTCIX has been the more volatile fund at 16.1% annualized versus 15.1% for VXUS. Worst drawdown: VTCIX -26.0% vs VXUS -39.9%.
Should I hold both VTCIX and VXUS?
VTCIX and VXUS have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and VXUS?
VTCIX and VXUS share 8 common holdings with a 0.1% weight overlap. Combined, they hold 8678 unique securities.
Which pays a higher dividend, VTCIX or VXUS?
VTCIX yields 1.08% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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