PRFD vs VTI
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | PRFD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.03% | |
| AUM | $235M | $663.5B | |
| Dividend Yield | 5.72% | 1.07% | |
| Holdings | 223 | 3,543 | |
| YTD Return | +0.98% | +14.16% | |
| 1Y Return | +4.49% | +23.62% | |
| 3Y Return (annualized) | +8.39% | +21.43% | |
| 5Y Return (annualized) | - | +12.33% | |
| Volatility (annualized) | 6.9% | 15.3% | |
| Max Drawdown | -11.9% | -56.6% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | May 24, 2001 |
PRFD vs VTI Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PRFD returned +4.49% while VTI returned +23.62%. Year to date, PRFD is up 0.98% versus a gain of 14.16% for VTI.
Over three years, PRFD compounded at +8.39% per year against +21.43% for VTI. Across the full 4-year window we track, VTI has the edge at +8.14% annualized vs +5.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PRFD charges 0.73% per year while VTI 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 1.07% for VTI.
Holdings Overlap
PRFD and VTI share 1 holdings out of 2898 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 VTI | Difference |
|---|---|---|---|
| BK | 0.20% | 0.14% | 0.06% |
Frequently Asked Questions
Which is cheaper, PRFD or VTI?
PRFD has an expense ratio of 0.73% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, PRFD or VTI?
Over the past year PRFD returned +4.49% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.94% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, PRFD or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs VTI -56.6%.
Should I hold both PRFD and VTI?
PRFD and VTI have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and VTI?
PRFD and VTI share 1 common holdings with a 0.1% weight overlap. Combined, they hold 2898 unique securities.
Which pays a higher dividend, PRFD or VTI?
PRFD yields 5.72% while VTI yields 1.07%, so PRFD currently pays the higher dividend yield.
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