VTCIX vs VYM
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs Vanguard High Dividend Yield ETF
Which is better, VTCIX or VYM?
Large Cap Blend against Large Cap Value.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 33.3%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $5.2B | $81.6B |
| Dividend Yield | 0.90% | 2.22% |
| Holdings | 836 | 613 |
| YTD Price Return | +11.35% | +11.79%Best |
| 1Y Price Return | +16.89%Best | +14.95% |
| 3Y Price Return (annualized) | +19.15%Best | +14.75% |
| 5Y Price Return (annualized) | +10.87%Best | +8.95% |
| Volatility (annualized) | 15.9% | 13.9%Best |
| Max Drawdown | -26.0% | -17.5%Best |
| $10,000 over 5 years | $16,752Best | $15,351 |
| Top 10 Weight | 33.3% | 25.9%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 24, 1999 | Nov 10, 2006 |
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 VYM 2.22% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 9, 2026 (5 years).
VTCIX vs VYM 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 VYM Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VTCIX returned +16.89% while VYM returned +14.95%. Year to date, VTCIX is up 11.35% versus a gain of 11.79% for VYM.
Over three years, VTCIX compounded at +19.15% per year against +14.75% for VYM; over five years the annualized figures are +10.87% and +8.95% 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 13.9% for VYM. 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 -17.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTCIX charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VTCIX currently yields 0.90% against 2.22% for VYM.
Structure and taxes
VTCIX is a mutual fund and VYM 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
29.8% of VTCIX's money is in holdings VYM also owns. 89.6% of VYM's money is in holdings VTCIX also owns.
Most of VYM is already inside VTCIX. Owning both mostly buys the same companies twice.
322 positions in common, counted across the 884 positions we hold weights for in VTCIX and 603 in VYM, against full books of 836 and 613.
What only one of them owns
Our book lists 248 positions for VYM that do not appear in our book for VTCIX (8.1% of the fund), and 468 for VTCIX that do not appear in VYM (68.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VTCIX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.51% | 7.29% | 4.78% |
| JPMJpmorgan Chase & Co. | 1.30% | 3.38% | 2.08% |
| JNJJohnson & Johnson | 0.85% | 2.54% | 1.69% |
| XOMExxon Mobil Corp. | 0.82% | 2.36% | 1.54% |
| CATCaterpillar, Inc. | 0.68% | 2.01% | 1.33% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.64% | 1.93% | 1.29% |
| ABBVAbbvie Inc. | 0.60% | 1.85% | 1.25% |
| BACBank Of America Corp. | 0.60% | 1.56% | 0.96% |
| UNHUnitedhealth Group Inc. | 0.50% | 1.56% | 1.06% |
| HDHome Depot Inc/The | 0.47% | 1.46% | 0.99% |
89.6% of VYM is already inside VTCIX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTCIX or VYM?
VTCIX has an expense ratio of 0.03% while VYM charges 0.04%. VTCIX is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VTCIX or VYM?
Over the past year VTCIX returned +16.89% vs +14.95% for VYM, 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 VYM?
VTCIX has been the more volatile fund at 15.9% annualized versus 13.9% for VYM. Worst drawdown: VTCIX -26.0% vs VYM -17.5%.
Should I hold both VTCIX and VYM?
VTCIX and VYM have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VTCIX and VYM?
89.6% of VYM's money is in holdings VTCIX also owns. 89.6% of VYM's is in holdings VTCIX also owns. They hold 322 positions in common, counted across the 884 positions we hold weights for in VTCIX and 603 in VYM.
Which pays a higher dividend, VTCIX or VYM?
VTCIX yields 0.90% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is it better to hold VTCIX or VYM in a taxable account?
VYM 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 VYM better than VTCIX?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.