PFF vs VYM
iShares Preferred and Income Securities ETF vs Vanguard High Dividend Yield ETF
Which is better, PFF or VYM?
Preferred Stock against Large Cap Value.
VYM has a lower expense ratio. VYM 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 | VYM |
|---|---|---|
| Expense Ratio | 0.45% | 0.04%Best |
| AUM | $13.1B | $81.6B |
| Dividend Yield | 5.51% | 2.24% |
| Holdings | 464 | 613 |
| YTD Return | +0.48% | +14.82%Best |
| 1Y Return | +1.63% | +20.84%Best |
| 3Y Return (annualized) | +6.39% | +18.64%Best |
| 5Y Return (annualized) | +0.88% | +12.28%Best |
| Volatility (annualized) | 15.3% | 14.7%Best |
| Max Drawdown | -70.2% | -58.8%Best |
| $10,000 over 5 years | $10,448 | $17,845Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Mar 26, 2007 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 30, 2007 to Sep 4, 2026 (19.4 years).
PFF vs VYM 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 19.4 years both funds cover.
PFF vs VYM Performance
iShares Preferred and Income Securities ETF (PFF) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PFF returned +1.63% while VYM returned +20.84%. Year to date, PFF is up 0.48% versus a gain of 14.82% for VYM.
Over three years, PFF compounded at +6.39% per year against +18.64% for VYM; over five years the annualized figures are +0.88% and +12.28% respectively. Across the full 19-year window we track, VYM has the edge at +7.02% annualized vs -0.86%.
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 14.7% 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 -70.2% for PFF and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PFF charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, PFF currently yields 5.51% against 2.24% for VYM.
Holdings Overlap
At least 20.0% of VYM'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.
VYM and PFF share little of their money.
85 positions in common, counted across the 211 positions we hold weights for in PFF and 603 in VYM, against full books of 464 and 613.
Top Shared Holdings
| Stock | Weight in PFF | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 0.87% | 3.38% | 2.51% |
| WFCWells Fargo & Co. | 2.16% | 1.05% | 1.11% |
| ORCLOracle Corp - Common | 2.04% | 1.04% | 1.00% |
| BACBank of America Corp.: Financials | 1.40% | 1.56% | 0.16% |
| CCitigroup Inc. | 1.22% | 0.94% | 0.28% |
| HPEHewlett Packard Enterprise Co | 1.56% | 0.25% | 1.31% |
| NEENextera Energy Inc | 1.03% | 0.76% | 0.27% |
| GSGoldman Sachs Group Inc/The | 0.48% | 1.15% | 0.67% |
| MSMorgan Stanley | 0.47% | 0.97% | 0.50% |
| SOSouthern Co. | 0.93% | 0.45% | 0.48% |
You are not choosing between two funds in isolation.
Whichever of PFF and VYM 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 VYM?
PFF has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option, by $41 a year on a $10,000 investment.
Which performed better, PFF or VYM?
Over the past year PFF returned +1.63% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PFF annualized -0.86% vs +7.02% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PFF or VYM?
PFF has been the more volatile fund at 15.3% annualized versus 14.7% for VYM. Worst drawdown: PFF -70.2% vs VYM -58.8%.
Should I hold both PFF and VYM?
PFF and VYM have a monthly-return correlation of 0.59, 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 VYM?
At least 20.0% of VYM's money is in holdings PFF also owns. Our book for PFF is partial, so the real figure is this or higher. They hold 85 positions in common, counted across the 211 positions we hold weights for in PFF and 603 in VYM.
Which pays a higher dividend, PFF or VYM?
PFF yields 5.51% while VYM yields 2.24%, so PFF currently pays the higher dividend yield.
Is VYM better than PFF?
VYM has a lower expense ratio. VYM 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.