PFF vs VTI
iShares Preferred and Income Securities ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | PFF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.03% | |
| AUM | $13.3B | $666.9B | |
| Dividend Yield | 5.51% | 1.07% | |
| Holdings | 464 | 3,543 | |
| YTD Return | +0.75% | +13.67% | |
| 1Y Return | +2.43% | +22.17% | |
| 3Y Return (annualized) | +7.19% | +21.93% | |
| 5Y Return (annualized) | +1.09% | +12.51% | |
| Volatility (annualized) | 15.3% | 15.3% | |
| Max Drawdown | -70.2% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 26, 2007 | May 24, 2001 |
PFF vs VTI Performance
iShares Preferred and Income Securities ETF (PFF) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PFF returned +2.43% while VTI returned +22.17%. Year to date, PFF is up 0.75% versus a gain of 13.67% for VTI.
Over three years, PFF compounded at +7.19% per year against +21.93% for VTI; over five years the annualized figures are +1.09% and +12.51% respectively. Across the full 19-year window we track, VTI has the edge at +8.11% annualized vs -0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.3% 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 -70.2% for PFF and -56.6% for VTI. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFF charges 0.45% per year while VTI 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 1.07% for VTI.
Holdings Overlap
PFF and VTI share 144 holdings out of 2854 unique holdings combined, representing a 9.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFF or VTI?
PFF has an expense ratio of 0.45% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, PFF or VTI?
Over the past year PFF returned +2.43% vs +22.17% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), PFF annualized -0.85% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, PFF or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 15.3% for PFF. Worst drawdown: PFF -70.2% vs VTI -56.6%.
Should I hold both PFF and VTI?
PFF and VTI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFF and VTI?
PFF and VTI share 144 common holdings with a 9.5% weight overlap. Combined, they hold 2854 unique securities.
Which pays a higher dividend, PFF or VTI?
PFF yields 5.51% while VTI yields 1.07%, so PFF currently pays the higher dividend yield.
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