VTCIX vs XLF
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs State Street Financial Select Sector SPDR ETF
Which is better, VTCIX or XLF?
Large Cap Blend against Large Cap Value.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 56.7%.
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 | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $5.2B | $54.2B |
| Dividend Yield | 0.90% | 1.40% |
| Holdings | 836 | 80 |
| YTD Price Return | +11.60%Best | +4.22% |
| 1Y Price Return | +15.87%Best | +5.96% |
| 3Y Price Return (annualized) | +19.44%Best | +18.19% |
| 5Y Price Return (annualized) | +10.91%Best | +8.55% |
| Volatility (annualized) | 15.9%Best | 17.9% |
| Max Drawdown | -26.0%Best | -26.9% |
| $10,000 over 5 years | $16,782Best | $15,071 |
| Top 10 Weight | 33.3%Best | 56.7% |
| 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 XLF 1.40% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 11, 2026 (5 years).
VTCIX vs XLF 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 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 an ETF from SPDR State Street Global Advisors. Over the past year VTCIX returned +15.87% while XLF returned +5.96%. Year to date, VTCIX is up 11.60% versus a gain of 4.22% for XLF.
Over three years, VTCIX compounded at +19.44% per year against +18.19% for XLF; over five years the annualized figures are +10.91% and +8.55% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 17.9% 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 XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.90% against 1.40% for XLF.
Structure and taxes
VTCIX is a mutual fund and XLF 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
10.1% of VTCIX's money is in holdings XLF also owns. 92.2% of XLF's money is in holdings VTCIX also owns.
Most of XLF is already inside VTCIX. Owning both mostly buys the same companies twice.
66 positions in common, counted across the 884 positions we hold weights for in VTCIX and 77 in XLF, against full books of 836 and 80.
What only one of them owns
Our book lists 10 positions for XLF that do not appear in our book for VTCIX (7.5% of the fund), and 673 for VTCIX that do not appear in XLF (88.3%).
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 XLF | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co. | 1.30% | 11.96% | 10.66% |
| BRK.BBerkshire Hathaway B | 1.48% | 11.43% | 9.95% |
| VVisa Inc | 0.82% | 7.29% | 6.47% |
| MAMastercard Inc | 0.61% | 5.52% | 4.91% |
| GSGoldman Sachs Group Inc. | 0.42% | 3.74% | 3.32% |
| WFCWells Fargo & Co. | 0.38% | 3.33% | 2.95% |
| MSMorgan Stanley | 0.34% | 3.19% | 2.85% |
| CCitigroup Inc. | 0.34% | 2.87% | 2.53% |
| AXPAmerican Express Co. | 0.29% | 2.24% | 1.95% |
| SCHWCharles Schwab Corp. | 0.19% | 2.19% | 2.00% |
92.2% of XLF 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 XLF?
VTCIX has an expense ratio of 0.03% while XLF charges 0.08%. VTCIX is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTCIX or XLF?
Over the past year VTCIX returned +15.87% vs +5.96% for XLF, 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 XLF?
XLF has been the more volatile fund at 17.9% annualized versus 15.9% for VTCIX. Worst drawdown: VTCIX -26.0% vs XLF -26.9%.
Should I hold both VTCIX and XLF?
VTCIX and XLF have a monthly-return correlation of 0.77, 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 XLF?
92.2% of XLF's money is in holdings VTCIX also owns. 92.2% of XLF's is in holdings VTCIX also owns. They hold 66 positions in common, counted across the 884 positions we hold weights for in VTCIX and 77 in XLF.
Which pays a higher dividend, VTCIX or XLF?
VTCIX yields 0.90% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is it better to hold VTCIX or XLF in a taxable account?
XLF 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 XLF better than VTCIX?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 33.3% of the fund in its ten largest positions against 56.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.