PRFD vs VYM
PRFD vs VYM
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PRFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.04% | |
| AUM | $235M | $79.0B | |
| Dividend Yield | 5.72% | 2.86% | |
| Holdings | 223 | 568 | |
| YTD Return | +1.07% | +15.80% | |
| 1Y Return | +4.79% | +26.12% | |
| 3Y Return (annualized) | +8.39% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 6.9% | 14.6% | |
| Max Drawdown | -11.9% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 18, 2023 | Nov 10, 2006 |
PRFD vs VYM Performance
PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PRFD returned +4.79% while VYM returned +26.12%. Year to date, PRFD is up 1.07% versus a gain of 15.80% for VYM.
Over three years, PRFD compounded at +8.39% per year against +18.25% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs +5.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PRFD charges 0.73% per year while VYM charges 0.04%. On a $10,000 position that is $73 vs $4 annually, a gap of $69 per year that compounds over a long holding period. On income, PRFD currently yields 5.72% against 2.86% for VYM.
Holdings Overlap
PRFD and VYM share 1 holdings out of 673 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PRFD | Weight in VYM | Difference |
|---|---|---|---|
| BK | 0.20% | 0.36% | 0.16% |
Frequently Asked Questions
Which is cheaper, PRFD or VYM?
PRFD has an expense ratio of 0.73% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, PRFD or VYM?
Over the past year PRFD returned +4.79% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), PRFD annualized +5.98% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PRFD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.9% for PRFD. Worst drawdown: PRFD -11.9% vs VYM -58.8%.
Should I hold both PRFD and VYM?
PRFD and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PRFD and VYM?
PRFD and VYM share 1 common holdings with a 0.2% weight overlap. Combined, they hold 673 unique securities.
Which pays a higher dividend, PRFD or VYM?
PRFD yields 5.72% while VYM yields 2.86%, so PRFD currently pays the higher dividend yield.
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