PFF vs VOO
iShares Preferred and Income Securities ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PFF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.03% | |
| AUM | $13.3B | $997.4B | |
| Dividend Yield | 5.51% | 1.08% | |
| Holdings | 464 | 509 | |
| YTD Return | +1.58% | +14.27% | |
| 1Y Return | +3.46% | +21.79% | |
| 3Y Return (annualized) | +6.91% | +22.19% | |
| 5Y Return (annualized) | +1.11% | +13.28% | |
| Volatility (annualized) | 15.3% | 14.2% | |
| Max Drawdown | -70.2% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 26, 2007 | Sep 7, 2010 |
PFF vs VOO Performance
iShares Preferred and Income Securities ETF (PFF) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PFF returned +3.46% while VOO returned +21.79%. Year to date, PFF is up 1.58% versus a gain of 14.27% for VOO.
Over three years, PFF compounded at +6.91% per year against +22.19% for VOO; over five years the annualized figures are +1.11% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs -0.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFF has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.2% for VOO. 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 -70.2% for PFF and -34.3% for VOO. 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 0.72. 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
PFF and VOO share 59 holdings out of 657 unique holdings combined, representing a 10.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $42 per year of difference.
Which performed better, PFF or VOO?
Over the past year PFF returned +3.46% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PFF annualized -0.81% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, PFF or VOO?
PFF has been the more volatile fund at 15.3% annualized versus 14.2% for VOO. Worst drawdown: PFF -70.2% vs VOO -34.3%.
Should I hold both PFF and VOO?
PFF and VOO have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFF and VOO?
PFF and VOO share 59 common holdings with a 10.1% weight overlap. Combined, they hold 657 unique securities.
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.
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