PFF vs VXUS

PFF vs VXUS

Which is better, PFF or VXUS?

Preferred Stock against Large Cap Blend.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricPFFVXUS
Expense Ratio0.45%0.05%Best
AUM$13.1B$158.1B
Dividend Yield5.51%2.59%
Holdings4648,747
YTD Return+0.48%+16.15%Best
1Y Return+1.63%+27.58%Best
3Y Return (annualized)+6.39%+20.48%Best
5Y Return (annualized)+0.88%+9.09%Best
Volatility (annualized)9.0%Best15.0%
Max Drawdown-38.5%Best-39.9%
$10,000 over 5 years$10,448$15,450Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryAllocation/BalancedEquity
StylePreferred StockLarge Cap Blend
InceptionMar 26, 2007Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 4, 2026 (15.6 years).

PFF vs VXUS 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 covers the 15.6 years both funds cover.

PFF vs VXUS Performance

iShares Preferred and Income Securities ETF (PFF) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year PFF returned +1.63% while VXUS returned +27.58%. Year to date, PFF is up 0.48% versus a gain of 16.15% for VXUS.

Over three years, PFF compounded at +6.39% per year against +20.48% for VXUS; over five years the annualized figures are +0.88% and +9.09% respectively. Across the full 16-year window we track, VXUS has the edge at +4.93% annualized vs +0.53%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 9.0% 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 -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PFF charges 0.45% per year while VXUS charges 0.05%. On a $10,000 position that is $45 vs $5 annually, a gap of $40 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 2.59% for VXUS.

Holdings Overlap

We hold position weights for 211 holdings in PFF and 8,094 in VXUS, totalling 59.7% and 87.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 7 positions appear in both.

7 positions in common, counted across the 211 positions we hold weights for in PFF and 8,094 in VXUS, against full books of 464 and 8,747.

Top Shared Holdings

StockWeight in PFFWeight in VXUSDifference
ORCLOracle Corp - Common2.04%0.00%2.04%
SRESempra Common Stock0.30%0.00%0.30%
RHMG:SGTriton International Limited0.08%0.12%0.04%
HBANHuntington Bancshares Inc./Oh0.15%0.04%0.11%
AQN:CAAlgonquin Power & Utilities Corp - Common0.17%0.01%0.16%
BIPCBrookfield Infrastructure Corporation Class A Ordinary Shares - Subordinate Voting Shares0.07%0.01%0.06%
SARSaratoga Investment Corp0.05%0.01%0.04%

You are not choosing between two funds in isolation.

Whichever of PFF and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PFFVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PFF or VXUS?

PFF has an expense ratio of 0.45% while VXUS charges 0.05%. VXUS is the cheaper option, by $40 a year on a $10,000 investment.

Which performed better, PFF or VXUS?

Over the past year PFF returned +1.63% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PFF annualized +0.53% vs +4.93% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PFF or VXUS?

VXUS has been the more volatile fund at 15.0% annualized versus 9.0% for PFF. Worst drawdown: PFF -38.5% vs VXUS -39.9%.

Should I hold both PFF and VXUS?

PFF and VXUS have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PFF or VXUS?

PFF yields 5.51% while VXUS yields 2.59%, so PFF currently pays the higher dividend yield.

Is VXUS better than PFF?

VXUS has a lower expense ratio. VXUS 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.