PRFD vs. VRP

Last updated Jun 24, 2026

PRFD (PIMCO Preferred And Capital Securities Active Exchange-Traded Fund) and VRP (Invesco Variable Rate Preferred ETF) are both Preferred Stock/Convertible Bonds funds. PRFD is actively managed, while VRP is passively managed. Over the past 3 years, PRFD returned 9.34%/yr vs 9.77%/yr for VRP. At a 0.50 correlation, their price movements are largely independent. PRFD charges 0.74%/yr vs 0.50%/yr for VRP.

Performance

PRFD vs. VRP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) and Invesco Variable Rate Preferred ETF (VRP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PRFD achieves a 1.77% return, which is significantly lower than VRP's 2.23% return.

PRFD

• 1D: 0.04%
• 1M: 0.83%
• YTD: 1.77%
• 6M: 1.91%
• 1Y: 7.06%
• 3Y*: 9.34%
• 5Y*: —
• 10Y*: —

VRP

• 1D: 0.04%
• 1M: 0.49%
• YTD: 2.23%
• 6M: 2.36%
• 1Y: 6.26%
• 3Y*: 9.77%
• 5Y*: 4.31%
• 10Y*: 5.19%

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

PRFD vs. VRP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	1.77%	8.45%	9.92%	1.81%
VRP Invesco Variable Rate Preferred ETF	2.23%	7.34%	11.10%	6.31%

Correlation

The correlation between PRFD and VRP is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (All Time) Calculated using the full available price history since Jan 19, 2023	0.50

Return for Risk

PRFD vs. VRP — Risk / Return Rank

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

PRFD

PRFD Risk / Return Rank: 67
PRFD Sharpe Ratio Rank: 75
PRFD Sortino Ratio Rank: 75
PRFD Omega Ratio Rank: 82
PRFD Calmar Ratio Rank: 46
PRFD Martin Ratio Rank: 54

VRP

VRP Risk / Return Rank: 68
VRP Sharpe Ratio Rank: 71
VRP Sortino Ratio Rank: 75
VRP Omega Ratio Rank: 82
VRP Calmar Ratio Rank: 45
VRP 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.

PRFD vs. VRP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) and Invesco Variable Rate Preferred ETF (VRP). 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.

	PRFD	VRP	Difference
Sharpe ratio: Return per unit of total volatility	2.24	2.17	+0.07
Sortino ratio: Return per unit of downside risk	3.11	3.14	-0.03
Omega ratio: Gain probability vs. loss probability	1.45	1.46	-0.01
Calmar ratio: Return relative to maximum drawdown	2.16	2.18	-0.02
Martin ratio: Return relative to average drawdown	8.82	11.69	-2.87

PRFD vs. VRP - Sharpe Ratio Comparison

The current PRFD Sharpe Ratio is 2.24, which is comparable to the VRP Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of PRFD and VRP, 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

PRFD vs. VRP - Drawdown Comparison

The maximum PRFD drawdown since its inception was -11.93%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for PRFD and VRP.

Drawdown Indicators

	PRFD	VRP	Difference
Max Drawdown Largest peak-to-trough decline	-11.93%	-46.04%	+34.11%
Max Drawdown (1Y) Largest decline over 1 year	-3.28%	-2.89%	-0.39%
Max Drawdown (3Y) Largest decline over 3 years	-6.28%	-4.26%	-2.02%
Max Drawdown (5Y) Largest decline over 5 years	—	-13.76%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-46.04%	—
Current Drawdown Current decline from peak	-0.25%	-0.16%	-0.09%
Average Drawdown Average peak-to-trough decline	-2.20%	-2.30%	+0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.80%	0.54%	+0.26%

Volatility

PRFD vs. VRP - Volatility Comparison

PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) has a higher volatility of 0.73% compared to Invesco Variable Rate Preferred ETF (VRP) at 0.54%. This indicates that PRFD's price experiences larger fluctuations and is considered to be riskier than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PRFD	VRP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.73%	0.54%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	2.67%	2.33%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	3.18%	2.90%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.85%	6.55%	-1.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.85%	14.53%	-9.68%

PRFD vs. VRP - Expense Ratio Comparison

PRFD has a 0.74% expense ratio, which is higher than VRP's 0.50% expense ratio.

Dividends

PRFD vs. VRP - Dividend Comparison

PRFD's dividend yield for the trailing twelve months is around 5.75%, less than VRP's 6.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	5.75%	5.63%	5.53%	5.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VRP Invesco Variable Rate Preferred ETF	6.24%	6.53%	5.78%	6.61%	5.38%	4.25%	4.17%	4.71%	5.28%	4.69%	5.10%	5.02%

Frequently Asked Questions

Can I hold both PRFD and VRP in my portfolio?

PRFD and VRP have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PRFD or VRP?

PRFD has higher volatility (0.73%) compared to VRP (0.54%). In terms of maximum drawdown, PRFD dropped -11.93% vs VRP's -46.04%.

Which ETF is better, PRFD or VRP?

On 3-year performance, VRP leads with 9.77% vs 9.34% for PRFD. On fees, VRP is cheaper at 0.50% per year. On volatility, VRP has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PRFD or VRP?

Over the 3-year period, VRP has performed better with a 9.77% return vs 9.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PRFD or VRP?

VRP is cheaper with a 0.50% expense ratio, compared with 0.74% for PRFD.

Which ETF pays a higher dividend yield, PRFD or VRP?

VRP has the higher dividend yield at 6.24%, compared with 5.75% for PRFD.

What is the main difference between PRFD and VRP?

They also come from different issuers: PIMCO and Invesco. Their fees differ too: 0.74% for PRFD and 0.50% for VRP.

Which has better risk-adjusted returns?

PRFD currently has the higher Sharpe Ratio (2.24 vs 2.17), 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.