PFD vs VYM
Flaherty & Crumrine Preferred Income Fund Inc vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | - | 0.04% | |
| AUM | $159M | $79.0B | |
| Dividend Yield | 6.46% | 2.86% | |
| Holdings | 245 | 568 | |
| YTD Return | -0.14% | +15.80% | |
| 1Y Return | +6.86% | +26.12% | |
| 3Y Return (annualized) | +11.33% | +18.25% | |
| 5Y Return (annualized) | -0.88% | +12.51% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -85.8% | -58.8% | |
| Fund Family | Flaherty & Crumrine | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 1991 | Nov 10, 2006 |
PFD vs VYM Performance
Flaherty & Crumrine Preferred Income Fund Inc (PFD) is a ETF from Flaherty & Crumrine and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFD returned +6.86% while VYM returned +26.12%. Year to date, PFD is down 0.14% versus a gain of 15.80% for VYM.
Over three years, PFD compounded at +11.33% per year against +18.25% for VYM; over five years the annualized figures are -0.88% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +0.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFD has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 14.6% for VYM. 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 -85.8% for PFD and -58.8% for VYM. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Holdings Overlap
PFD and VYM share 18 holdings out of 720 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which performed better, PFD or VYM?
Over the past year PFD returned +6.86% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PFD annualized +0.62% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PFD or VYM?
PFD has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: PFD -85.8% vs VYM -58.8%.
Should I hold both PFD and VYM?
PFD and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFD and VYM?
PFD and VYM share 18 common holdings with a 1.5% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, PFD or VYM?
PFD yields 6.46% while VYM yields 2.86%, so PFD currently pays the higher dividend yield.
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