PFFR vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricPFFRVYMWinner
Expense Ratio0.45%0.04%
AUM$120M$79.0B
Dividend Yield8.29%2.86%
Holdings107568
YTD Return+1.62%+16.10%
1Y Return+3.49%+25.99%
3Y Return (annualized)+8.29%+18.29%
5Y Return (annualized)+0.92%+12.35%
Volatility (annualized)15.4%14.6%
Max Drawdown-54.2%-58.8%
Fund FamilyVirtus Investment PartnersVanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 7, 2017Nov 10, 2006

PFFR vs VYM Performance

InfraCap REIT Preferred ETF (PFFR) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFFR returned +3.49% while VYM returned +25.99%. Year to date, PFFR is up 1.62% versus a gain of 16.10% for VYM.

Over three years, PFFR compounded at +8.29% per year against +18.29% for VYM; over five years the annualized figures are +0.92% and +12.35% respectively. Across the full 10-year window we track, VYM has the edge at +7.08% annualized vs +0.52%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PFFR has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.6% 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 -54.2% for PFFR 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PFFR 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, PFFR currently yields 8.29% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PFFR and VYM share 0 holdings out of 566 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, PFFR or VYM?

PFFR has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, PFFR or VYM?

Over the past year PFFR returned +3.49% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), PFFR annualized +0.52% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, PFFR or VYM?

PFFR has been the more volatile fund at 15.4% annualized versus 14.6% for VYM. Worst drawdown: PFFR -54.2% vs VYM -58.8%.

Should I hold both PFFR and VYM?

PFFR and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PFFR and VYM?

PFFR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.

Which pays a higher dividend, PFFR or VYM?

PFFR yields 8.29% while VYM yields 2.86%, so PFFR currently pays the higher dividend yield.

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