PFF vs VOO
iShares Preferred and Income Securities ETF vs Vanguard S&P 500 ETF
Which is better, PFF or VOO?
Preferred Stock against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.
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 | PFF | VOO |
|---|---|---|
| Expense Ratio | 0.45% | 0.03%Best |
| AUM | $13.1B | $997.4B |
| Dividend Yield | 5.51% | 1.08% |
| Holdings | 464 | 509 |
| YTD Return | +0.48% | +13.37%Best |
| 1Y Return | +1.63% | +20.08%Best |
| 3Y Return (annualized) | +6.39% | +21.29%Best |
| 5Y Return (annualized) | +0.88% | +12.89%Best |
| Volatility (annualized) | 8.9%Best | 14.1% |
| Max Drawdown | -38.5% | -34.3%Best |
| $10,000 over 5 years | $10,448 | $18,335Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Mar 26, 2007 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
PFF vs VOO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PFF vs VOO Performance
iShares Preferred and Income Securities ETF (PFF) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PFF returned +1.63% while VOO returned +20.08%. Year to date, PFF is up 0.48% versus a gain of 13.37% for VOO.
Over three years, PFF compounded at +6.39% per year against +21.29% for VOO; over five years the annualized figures are +0.88% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +0.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 8.9% for PFF. 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 -38.5% for PFF and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFF charges 0.45% per year while VOO charges 0.03%. On a $10,000 position that is $45 vs $3 annually, a gap of $42 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 1.08% for VOO.
Holdings Overlap
At least 11.4% of VOO's money is in holdings PFF also owns.
Stated as a floor: for PFF, our book for it covers 59.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VOO and PFF share little of their money.
59 positions in common, counted across the 211 positions we hold weights for in PFF and 505 in VOO, against full books of 464 and 509.
Top Shared Holdings
| Stock | Weight in PFF | Weight in VOO | Difference |
|---|---|---|---|
| GOOGLAlphabet Inc.Class A | 2.35% | 3.25% | 0.90% |
| BABoeing Co | 3.84% | 0.26% | 3.58% |
| WFCWells Fargo & Co. | 2.16% | 0.39% | 1.77% |
| ORCLOracle Corp - Common | 2.04% | 0.39% | 1.65% |
| JPMJpmorgan Chase | 0.87% | 1.26% | 0.39% |
| BACBank of America Corp.: Financials | 1.40% | 0.58% | 0.82% |
| SMCISuper Micro Computer Inc Common Stock USD.001 | 1.68% | 0.03% | 1.65% |
| HPEHewlett Packard Enterprise Co | 1.56% | 0.09% | 1.47% |
| CCitigroup Inc. | 1.22% | 0.36% | 0.86% |
| NEENextera Energy Inc | 1.03% | 0.28% | 0.75% |
You are not choosing between two funds in isolation.
Whichever of PFF and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PFF or VOO?
PFF has an expense ratio of 0.45% while VOO charges 0.03%. VOO is the cheaper option, by $42 a year on a $10,000 investment.
Which performed better, PFF or VOO?
Over the past year PFF returned +1.63% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PFF annualized +0.38% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.9% for PFF. Worst drawdown: PFF -38.5% vs VOO -34.3%.
Should I hold both PFF and VOO?
PFF and VOO have a monthly-return correlation of 0.72, 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 PFF and VOO?
At least 11.4% of VOO's money is in holdings PFF also owns. Our book for PFF is partial, so the real figure is this or higher. They hold 59 positions in common, counted across the 211 positions we hold weights for in PFF and 505 in VOO.
Which pays a higher dividend, PFF or VOO?
PFF yields 5.51% while VOO yields 1.08%, so PFF currently pays the higher dividend yield.
Is VOO better than PFF?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.