PRFD vs VOO
PRFD vs VOO
PIMCO Preferred and Capital Securities Active Exchange-Traded 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 505 holdings.
Side-by-Side Comparison
| Metric | PRFD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.03% | |
| AUM | $235M | $979.0B | |
| Dividend Yield | 5.72% | 1.09% | |
| Holdings | 223 | 509 | |
| YTD Return | +1.07% | +13.80% | |
| 1Y Return | +4.79% | +23.71% | |
| 3Y Return (annualized) | +8.39% | +21.50% | |
| 5Y Return (annualized) | - | +13.44% | |
| Volatility (annualized) | 6.9% | 14.1% | |
| Max Drawdown | -11.9% | -34.3% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | Sep 7, 2010 |
PRFD vs VOO Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PRFD returned +4.79% while VOO returned +23.71%. Year to date, PRFD is up 1.07% versus a gain of 13.80% for VOO.
Over three years, PRFD compounded at +8.39% per year against +21.50% for VOO. Across the full 4-year window we track, VOO has the edge at +13.58% annualized vs +5.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 6.9% for PRFD. 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 -11.9% for PRFD 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PRFD charges 0.73% per year while VOO charges 0.03%. On a $10,000 position that is $73 vs $3 annually, a gap of $70 per year that compounds over a long holding period. On income, PRFD currently yields 5.72% against 1.09% for VOO.
Holdings Overlap
PRFD and VOO share 1 holdings out of 620 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PRFD | Weight in VOO | Difference |
|---|---|---|---|
| BK | 0.20% | 0.15% | 0.05% |
Frequently Asked Questions
Which is cheaper, PRFD or VOO?
PRFD has an expense ratio of 0.73% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, PRFD or VOO?
Over the past year PRFD returned +4.79% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, PRFD or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs VOO -34.3%.
Should I hold both PRFD and VOO?
PRFD and VOO have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and VOO?
PRFD and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 620 unique securities.
Which pays a higher dividend, PRFD or VOO?
PRFD yields 5.72% while VOO yields 1.09%, so PRFD currently pays the higher dividend yield.
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