PGZ vs VTI
Principal Real Estate Income Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | PGZ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.03% | |
| AUM | $74M | $666.9B | |
| Dividend Yield | 11.39% | 1.07% | |
| Holdings | 110 | 3,543 | |
| YTD Return | +8.23% | +13.38% | |
| 1Y Return | +7.94% | +21.12% | |
| 3Y Return (annualized) | +15.03% | +21.85% | |
| 5Y Return (annualized) | +2.33% | +12.44% | |
| Volatility (annualized) | 21.2% | 15.3% | |
| Max Drawdown | -68.8% | -56.6% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | May 24, 2001 |
PGZ vs VTI Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PGZ returned +7.94% while VTI returned +21.12%. Year to date, PGZ is up 8.23% versus a gain of 13.38% for VTI.
Over three years, PGZ compounded at +15.03% per year against +21.85% for VTI; over five years the annualized figures are +2.33% and +12.44% respectively. Across the full 20-year window we track, VTI has the edge at +8.10% annualized vs -1.63%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while VTI 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 1.07% for VTI.
Holdings Overlap
PGZ and VTI share 21 holdings out of 2827 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or VTI?
PGZ has an expense ratio of 2.16% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $213 per year of difference.
Which performed better, PGZ or VTI?
Over the past year PGZ returned +7.94% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), PGZ annualized -1.63% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, PGZ or VTI?
PGZ has been the more volatile fund at 21.2% annualized versus 15.3% for VTI. Worst drawdown: PGZ -68.8% vs VTI -56.6%.
Should I hold both PGZ and VTI?
PGZ and VTI have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and VTI?
PGZ and VTI share 21 common holdings with a 1.0% weight overlap. Combined, they hold 2827 unique securities.
Which pays a higher dividend, PGZ or VTI?
PGZ yields 11.39% while VTI yields 1.07%, so PGZ currently pays the higher dividend yield.
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