PREF vs VTI
Principal Spectrum Preferred Securities Active ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, PREF or VTI?
Preferred Stock against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
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
| Metric | PREF | VTI |
|---|---|---|
| Expense Ratio | 0.55% | 0.03%Best |
| AUM | $1.9B | $666.9B |
| Dividend Yield | 5.23% | 1.07% |
| Holdings | 163 | 3,543 |
| YTD Return | +1.89% | +13.95%Best |
| 1Y Return | +4.32% | +21.44%Best |
| 3Y Return (annualized) | +8.51% | +21.10%Best |
| 5Y Return (annualized) | +2.65% | +11.77%Best |
| Volatility (annualized) | 7.8%Best | 16.4% |
| Max Drawdown | -23.3%Best | -35.0% |
| $10,000 over 5 years | $11,397 | $17,443Best |
| Fund Family | Principal Funds | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Blend |
| Inception | Jul 10, 2017 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 11, 2017 to Sep 3, 2026 (9.1 years).
PREF vs VTI 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 9.1 years both funds cover.
PREF vs VTI Performance
Principal Spectrum Preferred Securities Active ETF (PREF) is an ETF from Principal Funds and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year PREF returned +4.32% while VTI returned +21.44%. Year to date, PREF is up 1.89% versus a gain of 13.95% for VTI.
Over three years, PREF compounded at +8.51% per year against +21.10% for VTI; over five years the annualized figures are +2.65% and +11.77% respectively. Across the full 9-year window we track, VTI has the edge at +13.95% annualized vs +2.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 7.8% for PREF. 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 -23.3% for PREF and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PREF charges 0.55% per year while VTI charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, PREF currently yields 5.23% against 1.07% for VTI.
Holdings Overlap
We hold position weights for 109 holdings in PREF and 2,787 in VTI, totalling 72.5% and 92.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 3 positions appear in both.
The two holdings books were reported 49 days apart, PREF as of Aug 18, 2026 and VTI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 109 positions we hold weights for in PREF and 2,787 in VTI, against full books of 163 and 3,543.
You are not choosing between two funds in isolation.
Whichever of PREF and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PREF or VTI?
PREF has an expense ratio of 0.55% while VTI charges 0.03%. VTI is the cheaper option, by $52 a year on a $10,000 investment.
Which performed better, PREF or VTI?
Over the past year PREF returned +4.32% vs +21.44% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), PREF annualized +2.10% vs +13.95% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PREF or VTI?
VTI has been the more volatile fund at 16.4% annualized versus 7.8% for PREF. Worst drawdown: PREF -23.3% vs VTI -35.0%.
Should I hold both PREF and VTI?
PREF and VTI have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PREF or VTI?
PREF yields 5.23% while VTI yields 1.07%, so PREF currently pays the higher dividend yield.
Is VTI better than PREF?
VTI has a lower expense ratio. VTI 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.