VTCIX vs XLF
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs State Street Financial Select Sector SPDR ETF
Quick Verdict
VTCIX has a lower expense ratio. VTCIX delivered stronger 1-year returns. VTCIX offers more diversification with 836 holdings.
Side-by-Side Comparison
| Metric | VTCIX | XLF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $5.2B | $58.6B | |
| Dividend Yield | 0.93% | 1.42% | |
| Holdings | 836 | 80 | |
| YTD Return | +12.08% | +5.55% | |
| 1Y Return | +20.64% | +10.76% | |
| 3Y Return (annualized) | +20.37% | +21.50% | |
| 5Y Return (annualized) | +11.00% | +10.54% | |
| Volatility (annualized) | 16.1% | 21.4% | |
| Max Drawdown | -26.0% | -83.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Feb 24, 1999 | Dec 16, 1998 |
VTCIX vs XLF Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year VTCIX returned +20.64% while XLF returned +10.76%. Year to date, VTCIX is up 12.08% versus a gain of 5.55% for XLF.
Over three years, VTCIX compounded at +20.37% per year against +21.50% for XLF; over five years the annualized figures are +11.00% and +10.54% respectively. Across the full 5-year window we track, VTCIX has the edge at +11.00% annualized vs +3.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -83.8% for XLF. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTCIX charges 0.03% per year while XLF 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 1.42% for XLF.
Holdings Overlap
VTCIX and XLF share 65 holdings out of 837 unique holdings combined, representing a 11.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTCIX or XLF?
VTCIX has an expense ratio of 0.03% while XLF 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 XLF?
Over the past year VTCIX returned +20.64% vs +10.76% for XLF, so VTCIX leads on 1-year performance. Over the longest common window we track (5 years), VTCIX annualized +11.00% vs +3.67% for XLF. Past performance does not guarantee future results.
Which is riskier, VTCIX or XLF?
XLF has been the more volatile fund at 21.4% annualized versus 16.1% for VTCIX. Worst drawdown: VTCIX -26.0% vs XLF -83.8%.
Should I hold both VTCIX and XLF?
VTCIX and XLF have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTCIX and XLF?
VTCIX and XLF share 65 common holdings with a 11.6% weight overlap. Combined, they hold 837 unique securities.
Which pays a higher dividend, VTCIX or XLF?
VTCIX yields 0.93% while XLF yields 1.42%, so XLF currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.