PFN vs VOO
PIMCO Income Strategy Fund II vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PFN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.29% | 0.03% | |
| AUM | $686M | $979.0B | |
| Dividend Yield | 12.41% | 1.09% | |
| Holdings | 513 | 509 | |
| YTD Return | +2.30% | +13.72% | |
| 1Y Return | +6.13% | +21.63% | |
| 3Y Return (annualized) | +12.74% | +21.55% | |
| 5Y Return (annualized) | +2.20% | +13.26% | |
| Volatility (annualized) | 18.7% | 14.1% | |
| Max Drawdown | -83.4% | -34.3% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 29, 2004 | Sep 7, 2010 |
PFN vs VOO Performance
PIMCO Income Strategy Fund II (PFN) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PFN returned +6.13% while VOO returned +21.63%. Year to date, PFN is up 2.30% versus a gain of 13.72% for VOO.
Over three years, PFN compounded at +12.74% per year against +21.55% for VOO; over five years the annualized figures are +2.20% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -1.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFN has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.1% for VOO. 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 -83.4% for PFN and -34.3% for VOO. 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
PFN charges 1.29% per year while VOO charges 0.03%. On a $10,000 position that is $129 vs $3 annually, a gap of $126 per year that compounds over a long holding period. On income, PFN currently yields 12.41% against 1.09% for VOO.
Holdings Overlap
PFN and VOO share 1 holdings out of 527 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFN | Weight in VOO | Difference |
|---|---|---|---|
| VICI | 0.42% | 0.04% | 0.38% |
Frequently Asked Questions
Which is cheaper, PFN or VOO?
PFN has an expense ratio of 1.29% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $126 per year of difference.
Which performed better, PFN or VOO?
Over the past year PFN returned +6.13% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PFN annualized -1.89% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, PFN or VOO?
PFN has been the more volatile fund at 18.7% annualized versus 14.1% for VOO. Worst drawdown: PFN -83.4% vs VOO -34.3%.
Should I hold both PFN and VOO?
PFN and VOO 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 PFN and VOO?
PFN and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, PFN or VOO?
PFN yields 12.41% while VOO yields 1.09%, so PFN currently pays the higher dividend yield.
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