PFO vs VYM

PFO vs VYM

Which is better, PFO or VYM?

Preferred Stock against Large Cap Value.

VYM led over 1Y, 3Y, 5Y and the full window.

Higher Returns: VYM

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

MetricPFOVYM
Expense Ratio-0.04%
AUM$131M$81.6B
Dividend Yield6.76%2.22%
Holdings260613
YTD Return-1.20%+10.96%Best
1Y Return-3.10%+15.42%Best
3Y Return (annualized)+13.68%+17.78%Best
5Y Return (annualized)-0.73%+12.05%Best
Volatility (annualized)20.5%14.6%Best
Max Drawdown-80.2%-58.8%Best
$10,000 over 5 years$9,640$17,663Best
Fund FamilyFlaherty & CrumrineVanguard (US)
CategoryAllocation/BalancedEquity
StylePreferred StockLarge Cap Value
InceptionFeb 13, 1992Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 22, 2026 (19.8 years).

PFO 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 19.8 years both funds cover.

PFO vs VYM Performance

Flaherty & Crumrine Preferred Income Opportunity Fund Inc (PFO) is an ETF from Flaherty & Crumrine and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PFO returned -3.10% while VYM returned +15.42%. Year to date, PFO is down 1.20% versus a gain of 10.96% for VYM.

Over three years, PFO compounded at +13.68% per year against +17.78% for VYM; over five years the annualized figures are -0.73% and +12.05% respectively. Across the full 20-year window we track, VYM has the edge at +6.80% annualized vs +0.38%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PFO has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -80.2% for PFO 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 0.41. They move together some of the time, and apart the rest.

Holdings Overlap

VYM already in PFO1.3%

At least 1.3% of VYM's money is in holdings PFO also owns.

Stated as a floor: for PFO, our book for it covers 79.9% 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 PFO share little of their money.

The two holdings books were reported 61 days apart, PFO as of May 31, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.

4 positions in common, counted across the 212 positions we hold weights for in PFO and 557 in VYM, against full books of 260 and 613.

Top Shared Holdings

StockWeight in PFOWeight in VYMDifference
FITBFifth Third Bancorp 6.875 04/01/2174 6.8751.21%0.21%1.00%
CCitigroup Inc V/R /Perp0.20%0.89%0.69%
FHNFt Real Estate Secs /pfd//res/0.52%0.05%0.47%
MTBM&T Bank Corporation 6.35 12/15/2173 6.35 2173-12-150.23%0.15%0.08%

You are not choosing between two funds in isolation.

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

PFOVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which performed better, PFO or VYM?

Over the past year PFO returned -3.10% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PFO annualized +0.38% vs +6.80% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PFO or VYM?

PFO has been the more volatile fund at 20.5% annualized versus 14.6% for VYM. Worst drawdown: PFO -80.2% vs VYM -58.8%.

Should I hold both PFO and VYM?

PFO and VYM have a monthly-return correlation of 0.41, 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 PFO and VYM?

At least 1.3% of VYM's money is in holdings PFO also owns. Our book for PFO is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 212 positions we hold weights for in PFO and 557 in VYM.

Which pays a higher dividend, PFO or VYM?

PFO yields 6.76% while VYM yields 2.22%, so PFO currently pays the higher dividend yield.

Is VYM better than PFO?

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.