PFFD vs VYM
Global X US Preferred ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PFFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.04% | |
| AUM | $2.1B | $79.0B | |
| Dividend Yield | 6.43% | 2.86% | |
| Holdings | 228 | 568 | |
| YTD Return | +0.31% | +15.80% | |
| 1Y Return | +3.40% | +26.12% | |
| 3Y Return (annualized) | +5.00% | +18.25% | |
| 5Y Return (annualized) | -0.71% | +12.51% | |
| Volatility (annualized) | 10.6% | 14.6% | |
| Max Drawdown | -31.3% | -58.8% | |
| Fund Family | Global X by mirae Asset | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 11, 2017 | Nov 10, 2006 |
PFFD vs VYM Performance
Global X US Preferred ETF (PFFD) is a ETF from Global X by mirae Asset and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFFD returned +3.40% while VYM returned +26.12%. Year to date, PFFD is up 0.31% versus a gain of 15.80% for VYM.
Over three years, PFFD compounded at +5.00% per year against +18.25% for VYM; over five years the annualized figures are -0.71% and +12.51% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +0.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 10.6% for PFFD. 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 -31.3% for PFFD and -58.8% for VYM. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PFFD charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, PFFD currently yields 6.43% against 2.86% for VYM.
Holdings Overlap
PFFD and VYM share 24 holdings out of 594 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFFD or VYM?
PFFD has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, PFFD or VYM?
Over the past year PFFD returned +3.40% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), PFFD annualized +0.24% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PFFD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.6% for PFFD. Worst drawdown: PFFD -31.3% vs VYM -58.8%.
Should I hold both PFFD and VYM?
PFFD and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFFD and VYM?
PFFD and VYM share 24 common holdings with a 3.4% weight overlap. Combined, they hold 594 unique securities.
Which pays a higher dividend, PFFD or VYM?
PFFD yields 6.43% while VYM yields 2.86%, so PFFD currently pays the higher dividend yield.
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