PFFV vs. BND
Compare and contrast key facts about Global X Variable Rate Preferred ETF (PFFV) and Vanguard Total Bond Market ETF (BND).
PFFV and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PFFV is a passively managed fund by Global X that tracks the performance of the ICE U.S. Variable Rate Preferred Securities Index. It was launched on Jun 22, 2020. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both PFFV and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PFFV or BND.
Key characteristics
| PFFV | BND | |
|---|---|---|
| YTD Return | 1.88% | -2.99% |
| 1Y Return | 10.08% | -0.77% |
| 3Y Return (Ann) | 0.21% | -3.50% |
| Sharpe Ratio | 1.14 | -0.18 |
| Daily Std Dev | 9.39% | 6.75% |
| Max Drawdown | -18.95% | -18.84% |
| Current Drawdown | -3.52% | -13.27% |
Correlation
The correlation between PFFV and BND is 0.34, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
PFFV vs. BND - Performance Comparison
In the year-to-date period, PFFV achieves a 1.88% return, which is significantly higher than BND's -2.99% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PFFV vs. BND - Expense Ratio Comparison
PFFV has a 0.25% expense ratio, which is higher than BND's 0.03% 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%.
Risk-Adjusted Performance
PFFV vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Global X Variable Rate Preferred ETF (PFFV) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
PFFV vs. BND - Dividend Comparison
PFFV's dividend yield for the trailing twelve months is around 7.26%, more than BND's 3.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFFV Global X Variable Rate Preferred ETF | 7.26% | 7.17% | 6.60% | 5.23% | 2.68% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
PFFV vs. BND - Drawdown Comparison
The maximum PFFV drawdown since its inception was -18.95%, roughly equal to the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for PFFV and BND. For additional features, visit the drawdowns tool.
Volatility
PFFV vs. BND - Volatility Comparison
Global X Variable Rate Preferred ETF (PFFV) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.89% and 1.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.