VRP vs. PRFD

Last updated Jun 4, 2026

VRP (Invesco Variable Rate Preferred ETF) and PRFD (PIMCO Preferred And Capital Securities Active Exchange-Traded Fund) are both Preferred Stock/Convertible Bonds funds. VRP is passively managed, while PRFD is actively managed. Over the past 3 years, VRP returned 9.76%/yr vs 9.23%/yr for PRFD. At a 0.50 correlation, their price movements are largely independent. VRP charges 0.50%/yr vs 0.74%/yr for PRFD.

Performance

VRP vs. PRFD - Performance Comparison

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

Returns By Period

In the year-to-date period, VRP achieves a 2.11% return, which is significantly higher than PRFD's 1.40% return.

VRP

• 1D: -0.12%
• 1M: 0.66%
• YTD: 2.11%
• 6M: 2.32%
• 1Y: 6.96%
• 3Y*: 9.76%
• 5Y*: 4.38%
• 10Y*: 5.23%

PRFD

• 1D: -0.20%
• 1M: 0.36%
• YTD: 1.40%
• 6M: 1.56%
• 1Y: 8.04%
• 3Y*: 9.23%
• 5Y*: —
• 10Y*: —

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

VRP vs. PRFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VRP Invesco Variable Rate Preferred ETF	2.11%	7.34%	11.10%	6.13%
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	1.40%	8.45%	9.92%	1.83%

Correlation

The correlation between VRP and PRFD 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	0.47
Correlation (All Time) Calculated using the full available price history since Jan 20, 2023	0.50

VRP vs. PRFD - Sectors Allocation Comparison

Sectors	VRP	PRFD
Financial Services	41.3%	2.0%
Utilities	17.0%	-
Energy	7.5%	-
Communication Services	4.5%	0.3%
Real Estate	2.8%	-
Healthcare	1.7%	-
Industrials	1.4%	-
Consumer Cyclical	0.7%	-
Consumer Defensive	0.3%	-
Basic Materials	0.2%	-
Technology	-	-

Return for Risk

VRP vs. PRFD — Risk / Return Rank

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

VRP

VRP Risk / Return Rank: 71
VRP Sharpe Ratio Rank: 73
VRP Sortino Ratio Rank: 77
VRP Omega Ratio Rank: 85
VRP Calmar Ratio Rank: 48
VRP Martin Ratio Rank: 70

PRFD

PRFD Risk / Return Rank: 69
PRFD Sharpe Ratio Rank: 77
PRFD Sortino Ratio Rank: 78
PRFD Omega Ratio Rank: 84
PRFD Calmar Ratio Rank: 50
PRFD Martin Ratio Rank: 58

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.

VRP vs. PRFD - Risk-Adjusted Trends Comparison

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

	VRP	PRFD	Difference
Sharpe ratio Return per unit of total volatility	2.42	2.51	-0.09
Sortino ratio Return per unit of downside risk	3.51	3.51	+0.01
Omega ratio Gain probability vs. loss probability	1.53	1.51	+0.02
Calmar ratio Return relative to maximum drawdown	2.42	2.46	-0.04
Martin ratio Return relative to average drawdown	13.02	10.14	+2.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VRP vs. PRFD - Sharpe Ratio Comparison

The current VRP Sharpe Ratio is 2.42, which is comparable to the PRFD Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of VRP and PRFD, 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

	VRP	PRFD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.42	2.51	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.67	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.36	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	1.31	-0.93

Drawdowns

VRP vs. PRFD - Drawdown Comparison

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

Drawdown Indicators

	VRP	PRFD	Difference
Max Drawdown Largest peak-to-trough decline	-46.04%	-11.93%	-34.11%
Max Drawdown (1Y) Largest decline over 1 year	-2.89%	-3.28%	+0.39%
Max Drawdown (3Y) Largest decline over 3 years	-4.26%	-6.28%	+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	-0.12%	-0.61%	+0.49%
Average Drawdown Average peak-to-trough decline	-2.31%	-2.23%	-0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.54%	0.79%	-0.25%

Volatility

VRP vs. PRFD - Volatility Comparison

The current volatility for Invesco Variable Rate Preferred ETF (VRP) is 0.66%, while PIMCO Preferred And Capital Securities Active Exchange-Traded Fund (PRFD) has a volatility of 1.19%. This indicates that VRP experiences smaller price fluctuations and is considered to be less risky than PRFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VRP	PRFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	1.19%	-0.53%
Volatility (6M) Calculated over the trailing 6-month period	2.33%	2.68%	-0.35%
Volatility (1Y) Calculated over the trailing 1-year period	2.88%	3.21%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.55%	4.88%	+1.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.53%	4.88%	+9.65%

VRP vs. PRFD - Expense Ratio Comparison

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

Dividends

VRP vs. PRFD - Dividend Comparison

VRP's dividend yield for the trailing twelve months is around 6.30%, more than PRFD's 5.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFD PIMCO Preferred And Capital Securities Active Exchange-Traded Fund	5.77%	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	6.30%	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 VRP and PRFD in my portfolio?

VRP and PRFD 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, VRP or PRFD?

PRFD has higher volatility (1.19%) compared to VRP (0.66%). In terms of maximum drawdown, VRP dropped -46.04% vs PRFD's -11.93%.

Which ETF is better, VRP or PRFD?

On 3-year performance, VRP leads with 9.76% vs 9.23% for PRFD. On fees, VRP is cheaper at 0.50% per year. On volatility, VRP has been the lower-risk option at 0.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VRP or PRFD?

Over the 3-year period, VRP has performed better with a 9.76% return vs 9.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VRP or PRFD?

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

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

VRP has the higher dividend yield at 6.30%, compared with 5.77% for PRFD.

What is the main difference between VRP and PRFD?

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

Which has better risk-adjusted returns?

PRFD currently has the higher Sharpe Ratio (2.51 vs 2.42), 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.