PRFD vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricPRFDVXUSWinner
Expense Ratio0.73%0.05%
AUM$235M$156.5B
Dividend Yield5.72%2.60%
Holdings2238,747
YTD Return+1.07%+14.57%
1Y Return+4.79%+27.82%
3Y Return (annualized)+8.39%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)6.9%15.1%
Max Drawdown-11.9%-39.9%
Fund FamilyPIMCO (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionJan 18, 2023Jan 26, 2011

PRFD vs VXUS Performance

PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PRFD returned +4.79% while VXUS returned +27.82%. Year to date, PRFD is up 1.07% versus a gain of 14.57% for VXUS.

Over three years, PRFD compounded at +8.39% per year against +19.27% for VXUS. Across the full 4-year window we track, PRFD has the edge at +5.98% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PRFD charges 0.73% per year while VXUS charges 0.05%. On a $10,000 position that is $73 vs $5 annually, a gap of $68 per year that compounds over a long holding period. On income, PRFD currently yields 5.72% against 2.60% for VXUS.

Holdings Overlap

0.6%overlap

PRFD and VXUS share 1 holdings out of 7976 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PRFDWeight in VXUSDifference
HSBA:LN0.61%0.72%0.11%

Frequently Asked Questions

Which is cheaper, PRFD or VXUS?

PRFD has an expense ratio of 0.73% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $68 per year of difference.

Which performed better, PRFD or VXUS?

Over the past year PRFD returned +4.79% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, PRFD or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs VXUS -39.9%.

Should I hold both PRFD and VXUS?

PRFD and VXUS have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PRFD and VXUS?

PRFD and VXUS share 1 common holdings with a 0.6% weight overlap. Combined, they hold 7976 unique securities.

Which pays a higher dividend, PRFD or VXUS?

PRFD yields 5.72% while VXUS yields 2.60%, so PRFD currently pays the higher dividend yield.

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