PFRL vs VYM
PGIM Floating Rate Income 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 | PFRL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.04% | |
| AUM | $122M | $79.0B | |
| Dividend Yield | 7.82% | 2.86% | |
| Holdings | 437 | 568 | |
| YTD Return | +3.56% | +16.78% | |
| 1Y Return | +5.81% | +24.43% | |
| 3Y Return (annualized) | +7.99% | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 3.5% | 14.6% | |
| Max Drawdown | -8.8% | -58.8% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 17, 2022 | Nov 10, 2006 |
PFRL vs VYM Performance
PGIM Floating Rate Income ETF (PFRL) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFRL returned +5.81% while VYM returned +24.43%. Year to date, PFRL is up 3.56% versus a gain of 16.78% for VYM.
Over three years, PFRL compounded at +7.99% per year against +18.60% for VYM. Across the full 4-year window we track, PFRL has the edge at +8.03% annualized vs +7.11%. 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 3.5% for PFRL. 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 -8.8% for PFRL 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
PFRL charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, PFRL currently yields 7.82% against 2.86% for VYM.
Holdings Overlap
PFRL and VYM share 1 holdings out of 603 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PFRL | Weight in VYM | Difference |
|---|---|---|---|
| GS | 0.36% | 1.05% | 0.69% |
Frequently Asked Questions
Which is cheaper, PFRL or VYM?
PFRL has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, PFRL or VYM?
Over the past year PFRL returned +5.81% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), PFRL annualized +8.03% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, PFRL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.5% for PFRL. Worst drawdown: PFRL -8.8% vs VYM -58.8%.
Should I hold both PFRL and VYM?
PFRL 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 PFRL and VYM?
PFRL and VYM share 1 common holdings with a 0.4% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, PFRL or VYM?
PFRL yields 7.82% while VYM yields 2.86%, so PFRL currently pays the higher dividend yield.
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