PFFD vs. VNQ

Last updated Jun 13, 2026

PFFD (Global X U.S. Preferred ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - PFFD is a Preferred Stock/Convertible Bonds fund tracking the ICE BofAML Diversified Core U.S. Preferred Securities Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 5 years, PFFD returned -0.25%/yr vs 2.55%/yr for VNQ. At a 0.49 correlation, their price movements are largely independent. PFFD charges 0.23%/yr vs 0.13%/yr for VNQ.

Performance

PFFD vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X U.S. Preferred ETF (PFFD) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFFD achieves a 2.18% return, which is significantly lower than VNQ's 12.51% return.

PFFD

• 1D: 0.27%
• 1M: -0.58%
• YTD: 2.18%
• 6M: 2.18%
• 1Y: 7.19%
• 3Y*: 5.67%
• 5Y*: -0.25%
• 10Y*: —

VNQ

• 1D: 0.92%
• 1M: 2.73%
• YTD: 12.51%
• 6M: 12.32%
• 1Y: 12.92%
• 3Y*: 10.14%
• 5Y*: 2.55%
• 10Y*: 5.65%

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

PFFD vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFFD Global X U.S. Preferred ETF	2.18%	3.22%	7.07%	6.85%	-20.20%	5.07%	8.90%	17.43%	-3.94%	0.69%
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	0.51%

Correlation

The correlation between PFFD and VNQ is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (All Time) Calculated using the full available price history since Sep 13, 2017	0.49

The correlation between PFFD and VNQ shifts across timeframes, from 0.43 (1 year) to 0.54 (5 years), reflecting how their relationship changes across market environments.

PFFD vs. VNQ - Sectors Allocation Comparison

Sectors	PFFD	VNQ
Financial Services	59.0%	0.1%
Utilities	15.1%	-
Technology	6.5%	0.3%
Industrials	5.6%	0.0%
Communication Services	4.4%	0.6%
Real Estate	4.0%	97.3%
Basic Materials	3.0%	1.1%
Consumer Cyclical	1.6%	-
Healthcare	1.0%	-
Consumer Defensive	-	-
Energy	-	0.1%

Return for Risk

PFFD vs. VNQ — Risk / Return Rank

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

PFFD

PFFD Risk / Return Rank: 29
PFFD Sharpe Ratio Rank: 31
PFFD Sortino Ratio Rank: 30
PFFD Omega Ratio Rank: 28
PFFD Calmar Ratio Rank: 28
PFFD Martin Ratio Rank: 29

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
VNQ Martin Ratio Rank: 36

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.

PFFD vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X U.S. Preferred ETF (PFFD) and Vanguard Real Estate ETF (VNQ). 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.

	PFFD	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	0.99	0.96	+0.03
Sortino ratio: Return per unit of downside risk	1.44	1.39	+0.05
Omega ratio: Gain probability vs. loss probability	1.17	1.17	0.00
Calmar ratio: Return relative to maximum drawdown	1.21	1.56	-0.35
Martin ratio: Return relative to average drawdown	3.55	4.90	-1.35

PFFD vs. VNQ - Sharpe Ratio Comparison

The current PFFD Sharpe Ratio is 0.99, which is comparable to the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of PFFD and VNQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PFFD vs. VNQ - Drawdown Comparison

The maximum PFFD drawdown since its inception was -30.93%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for PFFD and VNQ.

Drawdown Indicators

	PFFD	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-30.93%	-73.07%	+42.14%
Max Drawdown (1Y) Largest decline over 1 year	-5.97%	-8.34%	+2.37%
Max Drawdown (3Y) Largest decline over 3 years	-10.84%	-17.46%	+6.62%
Max Drawdown (5Y) Largest decline over 5 years	-24.45%	-34.48%	+10.03%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-3.78%	0.00%	-3.78%
Average Drawdown Average peak-to-trough decline	-6.58%	-13.61%	+7.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	2.65%	-0.62%

Volatility

PFFD vs. VNQ - Volatility Comparison

The current volatility for Global X U.S. Preferred ETF (PFFD) is 2.15%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.72%. This indicates that PFFD experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFFD	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.15%	4.72%	-2.57%
Volatility (6M) Calculated over the trailing 6-month period	5.40%	9.77%	-4.37%
Volatility (1Y) Calculated over the trailing 1-year period	7.29%	13.54%	-6.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.99%	18.84%	-7.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.74%	20.72%	-7.98%

PFFD vs. VNQ - Expense Ratio Comparison

PFFD has a 0.23% expense ratio, which is higher than VNQ's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PFFD vs. VNQ - Dividend Comparison

PFFD's dividend yield for the trailing twelve months is around 6.38%, more than VNQ's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFFD Global X U.S. Preferred ETF	6.38%	6.37%	6.42%	6.49%	6.63%	5.09%	5.17%	5.48%	6.21%	1.94%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.54%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%

Frequently Asked Questions

Can I hold both PFFD and VNQ in my portfolio?

PFFD and VNQ have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFFD or VNQ?

VNQ has higher volatility (4.72%) compared to PFFD (2.15%). In terms of maximum drawdown, PFFD dropped -30.93% vs VNQ's -73.07%.

Which ETF is better, PFFD or VNQ?

On 5-year performance, VNQ leads with 2.55% vs -0.25% for PFFD. On fees, VNQ is cheaper at 0.13% per year. On volatility, PFFD has been the lower-risk option at 2.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFFD or VNQ?

Over the 5-year period, VNQ has performed better with a 2.55% return vs -0.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFFD or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.23% for PFFD.

Which ETF pays a higher dividend yield, PFFD or VNQ?

PFFD has the higher dividend yield at 6.38%, compared with 3.54% for VNQ.

What is the main difference between PFFD and VNQ?

PFFD is categorized as Preferred Stock/Convertible Bonds, while VNQ is REIT. PFFD tracks ICE BofAML Diversified Core U.S. Preferred Securities Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Global X and Vanguard. Their fees differ too: 0.23% for PFFD and 0.13% for VNQ.

Which has better risk-adjusted returns?

PFFD currently has the higher Sharpe Ratio (0.99 vs 0.96), 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.