PGZ vs VOO
Principal Real Estate Income Fund 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 509 holdings.
Side-by-Side Comparison
| Metric | PGZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.03% | |
| AUM | $74M | $997.4B | |
| Dividend Yield | 11.39% | 1.08% | |
| Holdings | 110 | 509 | |
| YTD Return | +7.59% | +13.20% | |
| 1Y Return | +7.09% | +21.62% | |
| 3Y Return (annualized) | +14.79% | +22.16% | |
| 5Y Return (annualized) | +2.53% | +13.42% | |
| Volatility (annualized) | 21.2% | 14.1% | |
| Max Drawdown | -68.8% | -34.3% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Sep 7, 2010 |
PGZ vs VOO Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PGZ returned +7.09% while VOO returned +21.62%. Year to date, PGZ is up 7.59% versus a gain of 13.20% for VOO.
Over three years, PGZ compounded at +14.79% per year against +22.16% for VOO; over five years the annualized figures are +2.53% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs -1.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGZ has been the more volatile fund, with annualized monthly volatility of 21.2% 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 -68.8% for PGZ 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while VOO charges 0.03%. On a $10,000 position that is $216 vs $3 annually, a gap of $213 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 1.08% for VOO.
Holdings Overlap
PGZ and VOO share 13 holdings out of 553 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or VOO?
PGZ has an expense ratio of 2.16% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $213 per year of difference.
Which performed better, PGZ or VOO?
Over the past year PGZ returned +7.09% vs +21.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PGZ annualized -1.66% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, PGZ or VOO?
PGZ has been the more volatile fund at 21.2% annualized versus 14.1% for VOO. Worst drawdown: PGZ -68.8% vs VOO -34.3%.
Should I hold both PGZ and VOO?
PGZ and VOO have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and VOO?
PGZ and VOO share 13 common holdings with a 1.1% weight overlap. Combined, they hold 553 unique securities.
Which pays a higher dividend, PGZ or VOO?
PGZ yields 11.39% while VOO yields 1.08%, so PGZ currently pays the higher dividend yield.
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