PFF vs. VNQI

Last updated Jun 9, 2026

PFF (iShares Preferred and Income Securities ETF) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are both exchange-traded funds - PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index, while VNQI is a REIT fund tracking the S&P Global ex-U.S. Property Index. Both are passively managed. Over the past 10 years, PFF returned 3.27%/yr vs 2.19%/yr for VNQI. A 0.51 correlation means they provide meaningful diversification when combined. PFF charges 0.46%/yr vs 0.12%/yr for VNQI.

Performance

PFF vs. VNQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Preferred and Income Securities ETF (PFF) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFF achieves a 2.07% return, which is significantly higher than VNQI's -3.93% return. Over the past 10 years, PFF has outperformed VNQI with an annualized return of 3.27%, while VNQI has yielded a comparatively lower 2.19% annualized return.

PFF

• 1D: 0.19%
• 1M: -1.93%
• YTD: 2.07%
• 6M: 2.58%
• 1Y: 8.08%
• 3Y*: 6.61%
• 5Y*: 1.33%
• 10Y*: 3.27%

VNQI

• 1D: 0.18%
• 1M: -7.71%
• YTD: -3.93%
• 6M: -1.82%
• 1Y: 3.28%
• 3Y*: 7.32%
• 5Y*: -2.20%
• 10Y*: 2.19%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PFF vs. VNQI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFF iShares Preferred and Income Securities ETF	2.07%	4.87%	7.24%	9.22%	-18.19%	7.15%	7.89%	15.93%	-4.64%	8.10%
VNQI Vanguard Global ex-U.S. Real Estate ETF	-3.93%	21.38%	-2.22%	6.99%	-22.94%	5.93%	-7.22%	21.59%	-9.44%	26.91%

Correlation

The correlation between PFF and VNQI is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Nov 1, 2010	0.51

The correlation between PFF and VNQI has been stable across timeframes, ranging from 0.51 to 0.58 - a consistent structural relationship.

PFF vs. VNQI - Sectors Allocation Comparison

Sectors	PFF	VNQI
Financial Services	51.6%	1.9%
Real Estate	10.5%	91.2%
Utilities	8.7%	0.1%
Industrials	5.6%	0.7%
Technology	4.9%	0.2%
Communication Services	3.4%	-
Basic Materials	1.6%	0.3%
Healthcare	1.4%	0.0%
Consumer Cyclical	1.3%	1.1%
Consumer Defensive	1.2%	0.1%
Energy	0.4%	0.3%

Return for Risk

PFF vs. VNQI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PFF

PFF Risk / Return Rank: 35
PFF Sharpe Ratio Rank: 36
PFF Sortino Ratio Rank: 35
PFF Omega Ratio Rank: 34
PFF Calmar Ratio Rank: 34
PFF Martin Ratio Rank: 34

VNQI

VNQI Risk / Return Rank: 13
VNQI Sharpe Ratio Rank: 13
VNQI Sortino Ratio Rank: 13
VNQI Omega Ratio Rank: 13
VNQI Calmar Ratio Rank: 12
VNQI Martin Ratio Rank: 13

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PFF vs. VNQI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Preferred and Income Securities ETF (PFF) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). 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.

	PFF	VNQI	Difference
Sharpe ratio: Return per unit of total volatility	1.19	0.24	+0.95
Sortino ratio: Return per unit of downside risk	1.71	0.44	+1.27
Omega ratio: Gain probability vs. loss probability	1.21	1.05	+0.15
Calmar ratio: Return relative to maximum drawdown	1.54	0.22	+1.32
Martin ratio: Return relative to average drawdown	4.73	0.66	+4.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFF vs. VNQI - Sharpe Ratio Comparison

The current PFF Sharpe Ratio is 1.19, which is higher than the VNQI Sharpe Ratio of 0.24. The chart below compares the historical Sharpe Ratios of PFF and VNQI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PFF	VNQI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	0.24	+0.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	-0.14	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	0.14	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.19	+0.01

Drawdowns

PFF vs. VNQI - Drawdown Comparison

The maximum PFF drawdown since its inception was -65.55%, which is greater than VNQI's maximum drawdown of -38.35%. Use the drawdown chart below to compare losses from any high point for PFF and VNQI.

Drawdown Indicators

	PFF	VNQI	Difference
Max Drawdown Largest peak-to-trough decline	-65.55%	-38.35%	-27.20%
Max Drawdown (1Y) Largest decline over 1 year	-5.28%	-14.78%	+9.50%
Max Drawdown (3Y) Largest decline over 3 years	-10.63%	-16.35%	+5.72%
Max Drawdown (5Y) Largest decline over 5 years	-21.05%	-35.75%	+14.70%
Max Drawdown (10Y) Largest decline over 10 years	-34.10%	-38.35%	+4.25%
Current Drawdown Current decline from peak	-1.93%	-13.24%	+11.31%
Average Drawdown Average peak-to-trough decline	-5.76%	-10.89%	+5.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.71%	4.99%	-3.28%

Volatility

PFF vs. VNQI - Volatility Comparison

The current volatility for iShares Preferred and Income Securities ETF (PFF) is 2.20%, while Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a volatility of 3.90%. This indicates that PFF experiences smaller price fluctuations and is considered to be less risky than VNQI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFF	VNQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	3.90%	-1.70%
Volatility (6M) Calculated over the trailing 6-month period	5.17%	11.61%	-6.44%
Volatility (1Y) Calculated over the trailing 1-year period	6.84%	13.61%	-6.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.31%	15.52%	-5.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.67%	16.07%	-3.40%

PFF vs. VNQI - Expense Ratio Comparison

PFF has a 0.46% expense ratio, which is higher than VNQI's 0.12% expense ratio.

Dividends

PFF vs. VNQI - Dividend Comparison

PFF's dividend yield for the trailing twelve months is around 5.52%, more than VNQI's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFF iShares Preferred and Income Securities ETF	5.52%	6.30%	6.32%	6.63%	6.01%	4.45%	4.79%	5.31%	6.32%	5.59%	5.85%	5.76%
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.90%	4.70%	5.16%	3.74%	0.57%	6.48%	0.93%	7.58%	4.62%	3.86%	5.18%	2.86%

Frequently Asked Questions

Can I hold both PFF and VNQI in my portfolio?

PFF and VNQI have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFF or VNQI?

VNQI has higher volatility (3.90%) compared to PFF (2.20%). In terms of maximum drawdown, PFF dropped -65.55% vs VNQI's -38.35%.

Which ETF is better, PFF or VNQI?

On 10-year performance, PFF leads with 3.27% vs 2.19% for VNQI. On fees, VNQI is cheaper at 0.12% per year. On volatility, PFF has been the lower-risk option at 2.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFF or VNQI?

Over the 10-year period, PFF has performed better with a 3.27% return vs 2.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFF or VNQI?

VNQI is cheaper with a 0.12% expense ratio, compared with 0.46% for PFF.

Which ETF pays a higher dividend yield, PFF or VNQI?

PFF has the higher dividend yield at 5.52%, compared with 4.90% for VNQI.

What is the main difference between PFF and VNQI?

PFF is categorized as Preferred Stock/Convertible Bonds, while VNQI is REIT. PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index, while VNQI tracks S&P Global ex-U.S. Property Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for PFF and 0.12% for VNQI.

Which has better risk-adjusted returns?

PFF currently has the higher Sharpe Ratio (1.19 vs 0.24), 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.