VTCAX vs. VFIAX

Last updated Aug 2, 2026

VTCAX (Vanguard Communication Services Index Fund Admiral Shares) and VFIAX (Vanguard 500 Index Fund Admiral Shares) are both mutual funds - VTCAX is a Technology Equities fund managed by Vanguard, while VFIAX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VTCAX returned 7.65%/yr vs 14.96%/yr for VFIAX. Their 0.79 correlation means they have sometimes moved together and sometimes differently. VTCAX charges 0.10%/yr vs 0.04%/yr for VFIAX.

Performance

VTCAX vs. VFIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Communication Services Index Fund Admiral Shares (VTCAX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTCAX achieves a -6.72% return, which is significantly lower than VFIAX's 9.33% return. Over the past 10 years, VTCAX has underperformed VFIAX with an annualized return of 7.65%, while VFIAX has yielded a comparatively higher 14.96% annualized return.

VTCAX

• 1D: -2.70%
• 1M: -4.25%
• 6M: -9.43%
• YTD: -6.72%
• 1Y: 5.85%
• 3Y*: 18.15%
• 5Y*: 5.59%
• 10Y*: 7.65%
• ALL TIME*: 8.53%

VFIAX

• 1D: 1.66%
• 1M: -0.56%
• 6M: 7.77%
• YTD: 9.33%
• 1Y: 20.60%
• 3Y*: 19.00%
• 5Y*: 12.65%
• 10Y*: 14.96%
• ALL TIME*: 8.81%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VFIAX Vanguard 500 Index Fund Admiral Shares	$0.00	$0.00	$0.00
VTCAX Vanguard Communication Services Index Fund Admiral Shares	$0.00	$0.00	$0.00

VTCAX vs. VFIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTCAX Vanguard Communication Services Index Fund Admiral Shares	-6.72%	26.28%	33.10%	44.73%	-38.78%	14.09%	28.95%	28.03%	-16.51%	-5.57%
VFIAX Vanguard 500 Index Fund Admiral Shares	9.33%	17.83%	24.97%	26.24%	-18.16%	28.65%	18.32%	31.46%	-4.45%	21.78%

Correlation

The correlation between VTCAX and VFIAX is 0.66, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.66
Correlation (3Y) Balances recent behavior with more history.	0.76
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (10Y) Provides a long-term view across more market conditions.	0.79
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.79

The correlation between VTCAX and VFIAX shifts across timeframes, from 0.66 (1 year) to 0.82 (5 years), reflecting how their relationship changes across market environments.

VTCAX vs. VFIAX - Sectors Allocation Comparison

Sectors	VTCAX	VFIAX
Communication Services	95.8%	9.9%
Industrials	2.4%	8.5%
Technology	1.5%	38.6%
Consumer Cyclical	0.2%	9.5%
Real Estate	0.1%	1.8%
Healthcare	0.0%	8.9%
Basic Materials	-	1.7%
Consumer Defensive	-	4.5%
Energy	-	3.0%
Financial Services	-	11.4%
Utilities	-	2.2%

Return for Risk

VTCAX vs. VFIAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTCAX

VTCAX Risk / Return Rank: 10
VTCAX Sharpe Ratio Rank: 10
VTCAX Sortino Ratio Rank: 10
VTCAX Omega Ratio Rank: 10
VTCAX Calmar Ratio Rank: 10
VTCAX Martin Ratio Rank: 11

VFIAX

VFIAX Risk / Return Rank: 63
VFIAX Sharpe Ratio Rank: 61
VFIAX Sortino Ratio Rank: 57
VFIAX Omega Ratio Rank: 58
VFIAX Calmar Ratio Rank: 65
VFIAX Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTCAX vs. VFIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Communication Services Index Fund Admiral Shares (VTCAX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VTCAX	VFIAX	Difference
Sharpe ratio: Return per unit of total volatility	0.35	1.43	-1.08
Sortino ratio: Return per unit of downside risk	0.61	1.99	-1.39
Omega ratio: Gain probability vs. loss probability	1.07	1.26	-0.18
Calmar ratio: Return relative to maximum drawdown	0.44	2.06	-1.62
Martin ratio: Return relative to average drawdown	1.33	8.84	-7.51

VTCAX vs. VFIAX - Sharpe Ratio Comparison

The current VTCAX Sharpe Ratio is 0.35, which is lower than the VFIAX Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of VTCAX and VFIAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTCAX vs. VFIAX - Drawdown Comparison

The maximum VTCAX drawdown since its inception was -57.11%, roughly equal to the maximum VFIAX drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VTCAX and VFIAX.

Drawdown Indicators

	VTCAX	VFIAX	Difference
Max Drawdown Largest peak-to-trough decline	-57.11%	-55.20%	-1.91%
Max Drawdown (1Y) Largest decline over 1 year	-13.56%	-8.90%	-4.66%
Max Drawdown (3Y) Largest decline over 3 years	-21.19%	-18.75%	-2.44%
Max Drawdown (5Y) Largest decline over 5 years	-46.58%	-24.53%	-22.05%
Max Drawdown (10Y) Largest decline over 10 years	-46.58%	-33.83%	-12.75%
Current Drawdown Current decline from peak	-9.89%	-2.11%	-7.78%
Average Drawdown Average peak-to-trough decline	-11.85%	-9.35%	-2.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.44%	2.07%	+2.37%

Volatility

VTCAX vs. VFIAX - Volatility Comparison

Vanguard Communication Services Index Fund Admiral Shares (VTCAX) has a higher volatility of 7.04% compared to Vanguard 500 Index Fund Admiral Shares (VFIAX) at 3.44%. This indicates that VTCAX's price experiences larger fluctuations and is considered to be riskier than VFIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTCAX	VFIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.04%	3.44%	+3.60%
Volatility (6M) Calculated over the trailing 6-month period	13.58%	10.09%	+3.49%
Volatility (1Y) Calculated over the trailing 1-year period	17.02%	12.86%	+4.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.48%	17.01%	+4.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.11%	18.07%	+3.04%

VTCAX vs. VFIAX - Expense Ratio Comparison

VTCAX has a 0.10% expense ratio, which is higher than VFIAX's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTCAX vs. VFIAX - Dividend Comparison

VTCAX's dividend yield for the trailing twelve months is around 1.09%, more than VFIAX's 1.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIAX Vanguard 500 Index Fund Admiral Shares	1.07%	1.12%	1.24%	1.45%	1.68%	1.24%	1.53%	1.87%	2.05%	1.78%	2.02%	2.10%
VTCAX Vanguard Communication Services Index Fund Admiral Shares	1.09%	0.95%	1.06%	1.04%	0.88%	1.20%	0.73%	0.89%	2.77%	3.84%	2.68%	3.55%

Frequently Asked Questions

Can I hold both VTCAX and VFIAX in my portfolio?

VTCAX and VFIAX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTCAX or VFIAX?

VTCAX has higher volatility (7.04%) compared to VFIAX (3.44%). In terms of maximum drawdown, VTCAX dropped -57.11% vs VFIAX's -55.20%.

Which has better risk-adjusted returns?

VFIAX currently has the higher Sharpe Ratio (1.43 vs 0.35), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.