PFF vs. VCIT
PFF (iShares Preferred and Income Securities ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index, while VCIT is a Corporate Bonds fund tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index. Both are passively managed. Over the past 10 years, PFF returned 3.35%/yr vs 2.93%/yr for VCIT. At a 0.31 correlation, their price movements are largely independent. PFF charges 0.46%/yr vs 0.03%/yr for VCIT.
Performance
PFF vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, PFF achieves a 2.40% return, which is significantly higher than VCIT's 0.41% return. Over the past 10 years, PFF has outperformed VCIT with an annualized return of 3.35%, while VCIT has yielded a comparatively lower 2.93% annualized return.
PFF
- 1D
- 0.16%
- 1M
- -1.24%
- YTD
- 2.40%
- 6M
- 2.42%
- 1Y
- 8.83%
- 3Y*
- 6.77%
- 5Y*
- 1.32%
- 10Y*
- 3.35%
VCIT
- 1D
- -0.07%
- 1M
- 0.40%
- YTD
- 0.41%
- 6M
- 0.89%
- 1Y
- 6.00%
- 3Y*
- 6.37%
- 5Y*
- 1.11%
- 10Y*
- 2.93%
PFF vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 2.40% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 0.41% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between PFF and VCIT is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.55 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.31 |
Over the past year, PFF and VCIT have become more correlated (0.55) than their long-term average of 0.31, meaning their price movements have been converging.
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Return for Risk
PFF vs. VCIT — Risk / Return Rank
PFF
VCIT
PFF vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Preferred and Income Securities ETF (PFF) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| PFF | VCIT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.17 | ||
| Sortino ratioReturn per unit of downside risk | -0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.24 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 1.88 | -0.33 |
| Martin ratioReturn relative to average drawdown | 4.75 | 6.07 | -1.33 |
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Drawdowns
PFF vs. VCIT - Drawdown Comparison
The maximum PFF drawdown since its inception was -65.55%, which is greater than VCIT's maximum drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for PFF and VCIT.
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Drawdown Indicators
| PFF | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.55% | -20.56% | -44.99% |
Max Drawdown (1Y)Largest decline over 1 year | -5.28% | -2.96% | -2.32% |
Max Drawdown (3Y)Largest decline over 3 years | -10.63% | -6.11% | -4.52% |
Max Drawdown (5Y)Largest decline over 5 years | -21.05% | -20.56% | -0.49% |
Max Drawdown (10Y)Largest decline over 10 years | -34.10% | -20.56% | -13.54% |
Current DrawdownCurrent decline from peak | -1.62% | -1.13% | -0.49% |
Average DrawdownAverage peak-to-trough decline | -5.76% | -3.16% | -2.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.73% | 0.92% | +0.81% |
Volatility
PFF vs. VCIT - Volatility Comparison
iShares Preferred and Income Securities ETF (PFF) has a higher volatility of 2.29% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.48%. This indicates that PFF's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PFF | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 1.48% | +0.81% |
Volatility (6M)Calculated over the trailing 6-month period | 5.21% | 3.15% | +2.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.88% | 4.10% | +2.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.32% | 6.62% | +3.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.67% | 6.28% | +6.39% |
PFF vs. VCIT - Expense Ratio Comparison
PFF has a 0.46% expense ratio, which is higher than VCIT's 0.03% expense ratio.
Dividends
PFF vs. VCIT - Dividend Comparison
PFF's dividend yield for the trailing twelve months is around 5.50%, more than VCIT's 4.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 5.50% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.79% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Frequently Asked Questions
PFF and VCIT have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PFF has higher volatility (2.29%) compared to VCIT (1.48%). In terms of maximum drawdown, PFF dropped -65.55% vs VCIT's -20.56%.
On 10-year performance, PFF leads with 3.35% vs 2.93% for VCIT. On fees, VCIT is cheaper at 0.03% per year. On volatility, VCIT has been the lower-risk option at 1.48%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PFF has performed better with a 3.35% return vs 2.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCIT is cheaper with a 0.03% expense ratio, compared with 0.46% for PFF.
PFF has the higher dividend yield at 5.50%, compared with 4.79% for VCIT.
PFF is categorized as Preferred Stock/Convertible Bonds, while VCIT is Corporate Bonds. PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index, while VCIT tracks Bloomberg U.S. 5-10 Year Corporate Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for PFF and 0.03% for VCIT.
VCIT currently has the higher Sharpe Ratio (1.36 vs 1.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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