VTCIX vs XLE
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VTCIX has a lower expense ratio. XLE delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VTCIX | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $5.2B | $40.0B | |
| Dividend Yield | 0.93% | 2.55% | |
| Holdings | 836 | 24 | |
| YTD Return | +12.08% | +41.33% | |
| 1Y Return | +20.64% | +51.94% | |
| 3Y Return (annualized) | +20.37% | +16.98% | |
| 5Y Return (annualized) | +11.00% | +26.28% | |
| Volatility (annualized) | 16.1% | 25.1% | |
| Max Drawdown | -26.0% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Dec 16, 1998 |
VTCIX vs XLE Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year VTCIX returned +20.64% while XLE returned +51.94%. Year to date, VTCIX is up 12.08% versus a gain of 41.33% for XLE.
Over three years, VTCIX compounded at +20.37% per year against +16.98% for XLE; over five years the annualized figures are +11.00% and +26.28% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% 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 -76.7% for XLE. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTCIX charges 0.03% per year while XLE charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VTCIX currently yields 0.93% against 2.55% for XLE.
Holdings Overlap
VTCIX and XLE share 21 holdings out of 826 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTCIX or XLE?
VTCIX has an expense ratio of 0.03% while XLE charges 0.08%. VTCIX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTCIX or XLE?
Over the past year VTCIX returned +20.64% vs +51.94% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.00% vs +7.12% for XLE. Past performance does not guarantee future results.
Which is riskier, VTCIX or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 16.1% for VTCIX. Worst drawdown: VTCIX -26.0% vs XLE -76.7%.
Should I hold both VTCIX and XLE?
VTCIX and XLE have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and XLE?
VTCIX and XLE share 21 common holdings with a 3.7% weight overlap. Combined, they hold 826 unique securities.
Which pays a higher dividend, VTCIX or XLE?
VTCIX yields 0.93% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
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