VNQ vs VTCIX
Vanguard Real Estate ETF vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VNQ or VTCIX?
Mid Cap Blend against Large Cap Blend.
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 34.8% of the fund in its ten largest positions against 50.6%.
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 | VNQ | VTCIX |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $35.9B | $5.3B |
| Dividend Yield | 3.80% | 0.94% |
| Holdings | 144 | 890 |
| YTD Price Return | +2.07% | +13.50%Best |
| 1Y Price Return | +0.84% | +17.05%Best |
| 3Y Price Return (annualized) | +5.76% | +21.08%Best |
| 5Y Price Return (annualized) | -3.23% | +11.27%Best |
| Volatility (annualized) | 19.2% | 15.7%Best |
| Max Drawdown | -38.8% | -26.0%Best |
| $10,000 over 5 years | $8,486 | $17,057Best |
| Top 10 Weight | 50.6% | 34.8%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Sep 23, 2004 | Feb 24, 1999 |
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. VNQ yields 3.80% and VTCIX 0.94% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VNQ vs VTCIX 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.
VNQ vs VTCIX Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year VNQ returned +0.84% while VTCIX returned +17.05%. Year to date, VNQ is up 2.07% versus a gain of 13.50% for VTCIX.
Over three years, VNQ compounded at +5.76% per year against +21.08% for VTCIX; over five years the annualized figures are -3.23% and +11.27% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.7% 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 -38.8% for VNQ and -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQ charges 0.13% per year while VTCIX charges 0.03%. On a $10,000 position that is $13 vs $3 annually, a gap of $10 per year that compounds over a long holding period. On income, VNQ currently yields 3.80% against 0.94% for VTCIX.
Structure and taxes
VTCIX is a mutual fund and VNQ 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
77.0% of VNQ's money is in holdings VTCIX also owns. 2.0% of VTCIX's money is in holdings VNQ also owns.
Most of VNQ is already inside VTCIX. Owning both mostly buys the same companies twice.
38 positions in common, counted across the 140 positions we hold weights for in VNQ and 883 in VTCIX, against full books of 144 and 890.
What only one of them owns
Measured across the 140 and 883 positions we hold weights for.
VTCIX holds 706 positions VNQ does not, 96.8% of the fund.
Largest: NVDA 7.34%, AAPL 6.52%, MSFT 5.23%, AMZN 3.53%, GOOGL 2.71%
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VTCIX | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 10.23% | 0.28% | 9.95% |
| PLDPrologis Inc | 8.08% | 0.19% | 7.89% |
| EQIXEquinix Inc. Real Estate Investment Trust | 6.39% | 0.19% | 6.20% |
| AMTAmerican Tower Corporation | 5.07% | 0.09% | 4.98% |
| DLRDigital Realty Trust Inc. | 4.25% | 0.12% | 4.13% |
| SPGSimon Property Group Inc | 4.26% | 0.06% | 4.20% |
| ORealty Income Corp. | 3.51% | 0.01% | 3.50% |
| PSAPublic Storage | 3.19% | 0.06% | 3.13% |
| EQRVivmark Residential | 2.89% | 0.08% | 2.81% |
| VTRVentas Inc . | 2.75% | 0.10% | 2.65% |
77.0% of VNQ 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, VNQ or VTCIX?
VNQ has an expense ratio of 0.13% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VTCIX?
Over the past year VNQ returned +0.84% vs +17.05% for VTCIX, so VTCIX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VTCIX?
VNQ has been the more volatile fund at 19.2% annualized versus 15.7% for VTCIX. Worst drawdown: VNQ -38.8% vs VTCIX -26.0%.
Should I hold both VNQ and VTCIX?
VNQ and VTCIX have a monthly-return correlation of 0.79, 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 VNQ and VTCIX?
77.0% of VNQ's money is in holdings VTCIX also owns. 2.0% of VTCIX's is in holdings VNQ also owns. They hold 38 positions in common, counted across the 140 positions we hold weights for in VNQ and 883 in VTCIX.
Which pays a higher dividend, VNQ or VTCIX?
VNQ yields 3.80% while VTCIX yields 0.94%, so VNQ currently pays the higher dividend yield.
Is it better to hold VTCIX or VNQ in a taxable account?
VNQ 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 VTCIX better than VNQ?
VTCIX has a lower expense ratio. VTCIX led over 1Y, 3Y, 5Y and the full window. VTCIX is less concentrated, with 34.8% of the fund in its ten largest positions against 50.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.