VUG vs. PFF
VUG (Vanguard Growth ETF) and PFF (iShares Preferred and Income Securities ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index. Both are passively managed. Over the past 10 years, VUG returned 18.13%/yr vs 3.30%/yr for PFF. A 0.52 correlation means they provide meaningful diversification when combined. VUG charges 0.03%/yr vs 0.46%/yr for PFF.
Performance
VUG vs. PFF - Performance Comparison
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Returns By Period
In the year-to-date period, VUG achieves a 7.09% return, which is significantly higher than PFF's 2.93% return. Over the past 10 years, VUG has outperformed PFF with an annualized return of 18.13%, while PFF has yielded a comparatively lower 3.30% annualized return.
VUG
- 1D
- 1.60%
- 1M
- -0.64%
- YTD
- 7.09%
- 6M
- 7.04%
- 1Y
- 25.56%
- 3Y*
- 23.71%
- 5Y*
- 14.13%
- 10Y*
- 18.13%
PFF
- 1D
- 0.45%
- 1M
- 0.41%
- YTD
- 2.93%
- 6M
- 2.33%
- 1Y
- 8.86%
- 3Y*
- 7.05%
- 5Y*
- 1.45%
- 10Y*
- 3.30%
VUG vs. PFF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VUG Vanguard Growth ETF | 7.09% | 19.40% | 32.69% | 46.83% | -33.16% | 27.35% | 40.25% | 37.03% | -3.32% | 27.72% |
PFF iShares Preferred and Income Securities ETF | 2.93% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
Correlation
The correlation between VUG and PFF is 0.64, 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 | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.47 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2007 | 0.52 |
The correlation between VUG and PFF shifts across timeframes, from 0.47 (3 years) to 0.64 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VUG vs. PFF — Risk / Return Rank
VUG
PFF
VUG vs. PFF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) and iShares Preferred and Income Securities ETF (PFF). 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.
| VUG | PFF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.19 | ||
| Sortino ratioReturn per unit of downside risk | +0.15 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.23 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.51 | 1.72 | -0.20 |
| Martin ratioReturn relative to average drawdown | 5.19 | 5.21 | -0.03 |
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Drawdowns
VUG vs. PFF - Drawdown Comparison
The maximum VUG drawdown since its inception was -50.68%, smaller than the maximum PFF drawdown of -65.55%. Use the drawdown chart below to compare losses from any high point for VUG and PFF.
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Drawdown Indicators
| VUG | PFF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.68% | -65.55% | +14.87% |
Max Drawdown (1Y)Largest decline over 1 year | -16.53% | -5.28% | -11.25% |
Max Drawdown (3Y)Largest decline over 3 years | -22.85% | -10.63% | -12.22% |
Max Drawdown (5Y)Largest decline over 5 years | -35.61% | -21.05% | -14.56% |
Max Drawdown (10Y)Largest decline over 10 years | -35.61% | -34.10% | -1.51% |
Current DrawdownCurrent decline from peak | -3.67% | -1.11% | -2.56% |
Average DrawdownAverage peak-to-trough decline | -7.09% | -5.75% | -1.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.81% | 1.73% | +3.08% |
Volatility
VUG vs. PFF - Volatility Comparison
Vanguard Growth ETF (VUG) has a higher volatility of 6.56% compared to iShares Preferred and Income Securities ETF (PFF) at 2.08%. This indicates that VUG's price experiences larger fluctuations and is considered to be riskier than PFF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VUG | PFF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.56% | 2.08% | +4.48% |
Volatility (6M)Calculated over the trailing 6-month period | 13.38% | 5.28% | +8.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.72% | 6.91% | +9.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.35% | 10.33% | +12.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.51% | 12.67% | +8.84% |
VUG vs. PFF - Expense Ratio Comparison
VUG has a 0.03% expense ratio, which is lower than PFF's 0.46% expense ratio.
Dividends
VUG vs. PFF - Dividend Comparison
VUG's dividend yield for the trailing twelve months is around 0.38%, less than PFF's 5.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 5.47% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
VUG Vanguard Growth ETF | 0.38% | 0.41% | 0.47% | 0.58% | 0.70% | 0.48% | 0.66% | 0.95% | 1.32% | 1.14% | 1.39% | 1.30% |
Frequently Asked Questions
VUG and PFF have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VUG has higher volatility (6.56%) compared to PFF (2.08%). In terms of maximum drawdown, VUG dropped -50.68% vs PFF's -65.55%.
On 10-year performance, VUG leads with 18.13% vs 3.30% for PFF. On fees, VUG is cheaper at 0.03% per year. On volatility, PFF has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VUG has performed better with a 18.13% return vs 3.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VUG is cheaper with a 0.03% expense ratio, compared with 0.46% for PFF.
PFF has the higher dividend yield at 5.47%, compared with 0.38% for VUG.
VUG is categorized as Large Cap Growth Equities, while PFF is Preferred Stock/Convertible Bonds. VUG tracks CRSP US Large Cap Growth Index, while PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VUG and 0.46% for PFF.
VUG currently has the higher Sharpe Ratio (1.50 vs 1.31), 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.
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