PFIIX vs. VEA

Last updated Jun 12, 2026

PFIIX (PIMCO Low Duration Income Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both funds - PFIIX is a Short-Term Bond fund managed by PIMCO, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Over the past 10 years, PFIIX returned 4.78%/yr vs 10.53%/yr for VEA. At a 0.46 correlation, their price movements are largely independent. PFIIX charges 0.50%/yr vs 0.03%/yr for VEA.

Performance

PFIIX vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Low Duration Income Fund (PFIIX) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFIIX achieves a 1.10% return, which is significantly lower than VEA's 14.35% return. Over the past 10 years, PFIIX has underperformed VEA with an annualized return of 4.78%, while VEA has yielded a comparatively higher 10.53% annualized return.

PFIIX

• 1D: 0.00%
• 1M: 0.28%
• YTD: 1.10%
• 6M: 1.56%
• 1Y: 6.73%
• 3Y*: 7.37%
• 5Y*: 3.98%
• 10Y*: 4.78%

VEA

• 1D: 3.63%
• 1M: 1.92%
• YTD: 14.35%
• 6M: 15.67%
• 1Y: 30.39%
• 3Y*: 19.28%
• 5Y*: 9.43%
• 10Y*: 10.53%

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

PFIIX vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFIIX PIMCO Low Duration Income Fund	1.10%	9.56%	6.58%	7.78%	-5.29%	2.38%	4.84%	6.72%	1.56%	6.05%
VEA Vanguard FTSE Developed Markets ETF	14.35%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between PFIIX and VEA is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.46

The correlation between PFIIX and VEA shifts across timeframes, from 0.42 (3 years) to 0.52 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

PFIIX vs. VEA — Risk / Return Rank

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

PFIIX

PFIIX Risk / Return Rank: 87
PFIIX Sharpe Ratio Rank: 87
PFIIX Sortino Ratio Rank: 91
PFIIX Omega Ratio Rank: 90
PFIIX Calmar Ratio Rank: 81
PFIIX Martin Ratio Rank: 86

VEA

VEA Risk / Return Rank: 67
VEA Sharpe Ratio Rank: 69
VEA Sortino Ratio Rank: 68
VEA Omega Ratio Rank: 68
VEA Calmar Ratio Rank: 64
VEA Martin Ratio Rank: 67

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.

PFIIX vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Low Duration Income Fund (PFIIX) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	PFIIX	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.55	1.84	+0.70
Sortino ratio: Return per unit of downside risk	4.17	2.54	+1.63
Omega ratio: Gain probability vs. loss probability	1.61	1.34	+0.27
Calmar ratio: Return relative to maximum drawdown	3.27	2.63	+0.64
Martin ratio: Return relative to average drawdown	13.92	10.08	+3.84

PFIIX vs. VEA - Sharpe Ratio Comparison

The current PFIIX Sharpe Ratio is 2.55, which is higher than the VEA Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of PFIIX and VEA, 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

PFIIX vs. VEA - Drawdown Comparison

The maximum PFIIX drawdown since its inception was -28.35%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for PFIIX and VEA.

Drawdown Indicators

	PFIIX	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-28.35%	-60.68%	+32.33%
Max Drawdown (1Y) Largest decline over 1 year	-2.16%	-11.63%	+9.47%
Max Drawdown (3Y) Largest decline over 3 years	-2.23%	-13.45%	+11.22%
Max Drawdown (5Y) Largest decline over 5 years	-8.84%	-29.71%	+20.87%
Max Drawdown (10Y) Largest decline over 10 years	-11.72%	-35.73%	+24.01%
Current Drawdown Current decline from peak	-0.36%	-1.40%	+1.04%
Average Drawdown Average peak-to-trough decline	-2.60%	-13.28%	+10.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	3.02%	-2.52%

Volatility

PFIIX vs. VEA - Volatility Comparison

The current volatility for PIMCO Low Duration Income Fund (PFIIX) is 1.03%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 6.89%. This indicates that PFIIX experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFIIX	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.03%	6.89%	-5.86%
Volatility (6M) Calculated over the trailing 6-month period	2.20%	14.42%	-12.22%
Volatility (1Y) Calculated over the trailing 1-year period	2.77%	16.58%	-13.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.18%	16.72%	-13.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.17%	17.41%	-14.24%

PFIIX vs. VEA - Expense Ratio Comparison

PFIIX has a 0.50% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

PFIIX vs. VEA - Dividend Comparison

PFIIX's dividend yield for the trailing twelve months is around 5.29%, more than VEA's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFIIX PIMCO Low Duration Income Fund	5.29%	5.49%	5.37%	4.97%	5.35%	3.06%	3.44%	4.74%	3.22%	3.13%	3.75%	5.36%
VEA Vanguard FTSE Developed Markets ETF	2.63%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both PFIIX and VEA in my portfolio?

PFIIX and VEA have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFIIX or VEA?

VEA has higher volatility (6.89%) compared to PFIIX (1.03%). In terms of maximum drawdown, PFIIX dropped -28.35% vs VEA's -60.68%.

Which has better risk-adjusted returns?

PFIIX currently has the higher Sharpe Ratio (2.55 vs 1.84), 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.