PGZ vs VXUS
Principal Real Estate Income Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | PGZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.05% | |
| AUM | $74M | $158.1B | |
| Dividend Yield | 11.39% | 2.59% | |
| Holdings | 110 | 8,747 | |
| YTD Return | +9.68% | +15.22% | |
| 1Y Return | +7.93% | +26.86% | |
| 3Y Return (annualized) | +14.72% | +20.34% | |
| 5Y Return (annualized) | +2.73% | +9.38% | |
| Volatility (annualized) | 21.2% | 15.1% | |
| Max Drawdown | -68.8% | -39.9% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Jan 26, 2011 |
PGZ vs VXUS Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PGZ returned +7.93% while VXUS returned +26.86%. Year to date, PGZ is up 9.68% versus a gain of 15.22% for VXUS.
Over three years, PGZ compounded at +14.72% per year against +20.34% for VXUS; over five years the annualized figures are +2.73% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -1.57%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while VXUS charges 0.05%. On a $10,000 position that is $216 vs $5 annually, a gap of $211 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 2.59% for VXUS.
Holdings Overlap
PGZ and VXUS share 22 holdings out of 7908 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or VXUS?
PGZ has an expense ratio of 2.16% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $211 per year of difference.
Which performed better, PGZ or VXUS?
Over the past year PGZ returned +7.93% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PGZ annualized -1.57% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, PGZ or VXUS?
PGZ has been the more volatile fund at 21.2% annualized versus 15.1% for VXUS. Worst drawdown: PGZ -68.8% vs VXUS -39.9%.
Should I hold both PGZ and VXUS?
PGZ and VXUS have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and VXUS?
PGZ and VXUS share 22 common holdings with a 0.5% weight overlap. Combined, they hold 7908 unique securities.
Which pays a higher dividend, PGZ or VXUS?
PGZ yields 11.39% while VXUS yields 2.59%, so PGZ currently pays the higher dividend yield.
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