VTCIX vs XLE
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs State Street Energy Select Sector SPDR ETF
Which is better, VTCIX or XLE?
Large Cap Blend against Large Cap Value.
VTCIX has a lower expense ratio. VTCIX led over 3Y, XLE over 1Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 73.4%.
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 | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $5.2B | $42.4B |
| Dividend Yield | 0.90% | 2.55% |
| Holdings | 836 | 24 |
| YTD Price Return | +11.60% | +42.69%Best |
| 1Y Price Return | +15.87% | +46.17%Best |
| 3Y Price Return (annualized) | +19.44%Best | +11.91% |
| 5Y Price Return (annualized) | +11.04% | +21.55%Best |
| Volatility (annualized) | 15.9%Best | 26.2% |
| Max Drawdown | -26.0%Best | -26.9% |
| $10,000 over 5 years | $16,881 | $26,532Best |
| Top 10 Weight | 33.3%Best | 73.4% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 24, 1999 | Dec 16, 1998 |
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 XLE 2.55% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2021 to Sep 11, 2026 (5 years).
VTCIX vs XLE 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 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 an ETF from SPDR State Street Global Advisors. Over the past year VTCIX returned +15.87% while XLE returned +46.17%. Year to date, VTCIX is up 11.60% versus a gain of 42.69% for XLE.
Over three years, VTCIX compounded at +19.44% per year against +11.91% for XLE; over five years the annualized figures are +11.04% and +21.55% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.2% 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 -26.9% for XLE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.30. They move together some of the time, and apart the rest.
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 0.90% against 2.55% for XLE.
Structure and taxes
VTCIX is a mutual fund and XLE 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
2.8% of VTCIX's money is in holdings XLE also owns. 99.8% of XLE's money is in holdings VTCIX also owns.
Most of XLE is already inside VTCIX. Owning both mostly buys the same companies twice.
21 positions in common, counted across the 884 positions we hold weights for in VTCIX and 22 in XLE, against full books of 836 and 24.
What only one of them owns
Our book lists 1 positions for XLE that do not appear in our book for VTCIX (0.0% of the fund), and 719 for VTCIX that do not appear in XLE (95.7%).
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 XLE | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 0.82% | 21.04% | 20.22% |
| CVXChevron Corp. | 0.47% | 15.01% | 14.54% |
| COPConocophillips Co | 0.21% | 6.16% | 5.95% |
| PSXPhillips 66 | 0.09% | 4.91% | 4.82% |
| MPCMarathon Petroleum Corp. | 0.16% | 4.82% | 4.66% |
| VLOValero Energy Corp. | 0.14% | 4.70% | 4.56% |
| SLBSchlumberger Nv. | 0.11% | 4.57% | 4.46% |
| EOGEog Resources Inc | 0.10% | 4.28% | 4.18% |
| WMBWilliams Cos. Inc. | 0.07% | 3.95% | 3.88% |
| BKRBaker Hughes A Ge Co. Class A | 0.07% | 3.93% | 3.86% |
99.8% of XLE 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 XLE?
VTCIX has an expense ratio of 0.03% while XLE charges 0.08%. VTCIX is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTCIX or XLE?
Over the past year VTCIX returned +15.87% vs +46.17% for XLE, so XLE leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTCIX or XLE?
XLE has been the more volatile fund at 26.2% annualized versus 15.9% for VTCIX. Worst drawdown: VTCIX -26.0% vs XLE -26.9%.
Should I hold both VTCIX and XLE?
VTCIX and XLE have a monthly-return correlation of 0.30, 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 XLE?
99.8% of XLE's money is in holdings VTCIX also owns. 99.8% of XLE's is in holdings VTCIX also owns. They hold 21 positions in common, counted across the 884 positions we hold weights for in VTCIX and 22 in XLE.
Which pays a higher dividend, VTCIX or XLE?
VTCIX yields 0.90% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is it better to hold VTCIX or XLE in a taxable account?
XLE 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 XLE better than VTCIX?
VTCIX has a lower expense ratio. VTCIX led over 3Y, XLE over 1Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 73.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.