VTCIX vs XLK
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares vs State Street Technology Select Sector SPDR ETF
Which is better, VTCIX or XLK?
Large Cap Blend against Large Cap Growth.
VTCIX has a lower expense ratio. XLK 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 61.2%.
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 | XLK |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $5.2B | $119.7B |
| Dividend Yield | 0.90% | 0.43% |
| Holdings | 836 | 77 |
| YTD Price Return | +10.12% | +30.33%Best |
| 1Y Price Return | +14.06% | +38.57%Best |
| 3Y Price Return (annualized) | +19.03% | +30.49%Best |
| 5Y Price Return (annualized) | +11.15% | +19.33%Best |
| Volatility (annualized) | 15.9%Best | 24.1% |
| Max Drawdown | -26.0%Best | -34.0% |
| $10,000 over 5 years | $16,965 | $24,196Best |
| Top 10 Weight | 33.3%Best | 61.2% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| 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 XLK 0.43% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 16, 2026 (5 years).
VTCIX vs XLK 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 XLK Performance
Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year VTCIX returned +14.06% while XLK returned +38.57%. Year to date, VTCIX is up 10.12% versus a gain of 30.33% for XLK.
Over three years, VTCIX compounded at +19.03% per year against +30.49% for XLK; over five years the annualized figures are +11.15% and +19.33% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 24.1% 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 -34.0% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTCIX charges 0.03% per year while XLK 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 0.43% for XLK.
Structure and taxes
VTCIX is a mutual fund and XLK 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
34.2% of VTCIX's money is in holdings XLK also owns. 97.2% of XLK's money is in holdings VTCIX also owns.
Most of XLK is already inside VTCIX. Owning both mostly buys the same companies twice.
The two holdings books were reported 63 days apart, VTCIX as of Jun 30, 2026 and XLK as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
69 positions in common, counted across the 885 positions we hold weights for in VTCIX and 74 in XLK, against full books of 836 and 77.
What only one of them owns
Our book lists 4 positions for XLK that do not appear in our book for VTCIX (2.0% of the fund), and 675 for VTCIX that do not appear in XLK (64.3%).
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 XLK | Difference |
|---|---|---|---|
| NVDANvidia Corp | 6.77% | 14.37% | 7.60% |
| AAPLApple, Inc | 6.06% | 13.03% | 6.97% |
| MSFTMicrosoft Corp | 3.91% | 10.15% | 6.24% |
| AVGOBroadcom Inc | 2.51% | 4.78% | 2.27% |
| MUMicron Technology, Inc. | 1.84% | 3.95% | 2.11% |
| AMDAdvanced Micro Devices Inc | 1.33% | 3.90% | 2.57% |
| INTCIntel Corporation | 0.89% | 2.93% | 2.04% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.64% | 2.89% | 2.25% |
| LRCXLam Research Corp | 0.79% | 2.42% | 1.63% |
| AMATApplied Materials, Inc. | 0.83% | 2.34% | 1.51% |
97.2% of XLK 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 XLK?
VTCIX has an expense ratio of 0.03% while XLK charges 0.08%. VTCIX is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTCIX or XLK?
Over the past year VTCIX returned +14.06% vs +38.57% for XLK, so XLK leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTCIX or XLK?
XLK has been the more volatile fund at 24.1% annualized versus 15.9% for VTCIX. Worst drawdown: VTCIX -26.0% vs XLK -34.0%.
Should I hold both VTCIX and XLK?
VTCIX and XLK have a monthly-return correlation of 0.87, 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 XLK?
97.2% of XLK's money is in holdings VTCIX also owns. 97.2% of XLK's is in holdings VTCIX also owns. They hold 69 positions in common, counted across the 885 positions we hold weights for in VTCIX and 74 in XLK.
Which pays a higher dividend, VTCIX or XLK?
VTCIX yields 0.90% while XLK yields 0.43%, so VTCIX currently pays the higher dividend yield.
Is it better to hold VTCIX or XLK in a taxable account?
XLK 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 XLK better than VTCIX?
VTCIX has a lower expense ratio. XLK 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 61.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.