PRFD vs VOO
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Vanguard S&P 500 ETF
Which is better, PRFD or VOO?
Municipal Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y 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 | PRFD | VOO |
|---|---|---|
| Expense Ratio | 0.73% | 0.03%Best |
| AUM | $236M | $997.4B |
| Dividend Yield | 5.84% | 1.04% |
| Holdings | 242 | 509 |
| YTD Return | +0.56% | +12.37%Best |
| 1Y Return | +1.90% | +16.61%Best |
| 3Y Return (annualized) | +8.46% | +21.37%Best |
| 5Y Return (annualized) | - | +13.49% |
| Volatility (annualized) | 6.8%Best | 12.4% |
| Max Drawdown | -11.9%Best | -18.7% |
| $10,000 over 3.7 years | $12,251 | $20,750Best |
| Fund Family | PIMCO (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Jan 18, 2023 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.7 years row, are measured over the window both funds cover: Jan 19, 2023 to Sep 18, 2026 (3.7 years).
PRFD vs VOO 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 3.7 years both funds cover.
PRFD vs VOO Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is an ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PRFD returned +1.90% while VOO returned +16.61%. Year to date, PRFD is up 0.56% versus a gain of 12.37% for VOO.
Over three years, PRFD compounded at +8.46% per year against +21.37% for VOO. Across the full 4-year window we track, VOO has the edge at +21.81% annualized vs +5.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 12.4% compared with 6.8% 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 -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
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 5.84% against 1.04% for VOO.
Holdings Overlap
At least 0.3% of VOO's money is in holdings PRFD also owns.
Stated as a floor: for PRFD, our book for it covers 61.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 133 positions we hold weights for in PRFD and 494 in VOO, against full books of 242 and 509.
Top Shared Holdings
| Stock | Weight in PRFD | Weight in VOO | Difference |
|---|---|---|---|
| CCitigroup Inc 6.875 11/73 6.88 2173-11-15 | 0.34% | 0.34% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of PRFD and VOO 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, PRFD or VOO?
PRFD has an expense ratio of 0.73% while VOO charges 0.03%. VOO is the cheaper option, by $70 a year on a $10,000 investment.
Which performed better, PRFD or VOO?
Over the past year PRFD returned +1.90% vs +16.61% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.64% vs +21.81% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PRFD or VOO?
VOO has been the more volatile fund at 12.4% annualized versus 6.8% for PRFD. Worst drawdown: PRFD -11.9% vs VOO -18.7%.
Should I hold both PRFD and VOO?
PRFD and VOO have a monthly-return correlation of 0.59, 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, PRFD or VOO?
PRFD yields 5.84% while VOO yields 1.04%, so PRFD currently pays the higher dividend yield.
Is VOO better than PRFD?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.