VWO vs. PFRL

Last updated Jun 9, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and PFRL (PGIM Floating Rate Income ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while PFRL is a Bank Loan fund actively managed by PGIM. VWO is passively managed, while PFRL is actively managed. Over the past 3 years, VWO returned 16.22%/yr vs 8.62%/yr for PFRL. At a 0.37 correlation, their price movements are largely independent. VWO charges 0.08%/yr vs 0.72%/yr for PFRL.

Performance

VWO vs. PFRL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and PGIM Floating Rate Income ETF (PFRL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 8.50% return, which is significantly higher than PFRL's 1.96% return.

VWO

• 1D: 0.52%
• 1M: -3.65%
• YTD: 8.50%
• 6M: 9.73%
• 1Y: 24.29%
• 3Y*: 16.22%
• 5Y*: 4.65%
• 10Y*: 8.60%

PFRL

• 1D: 0.01%
• 1M: 0.48%
• YTD: 1.96%
• 6M: 2.68%
• 1Y: 6.12%
• 3Y*: 8.62%
• 5Y*: —
• 10Y*: —

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

VWO vs. PFRL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VWO Vanguard FTSE Emerging Markets ETF	8.50%	25.60%	10.59%	9.25%	-3.04%
PFRL PGIM Floating Rate Income ETF	1.96%	6.25%	9.40%	13.75%	1.27%

Correlation

The correlation between VWO and PFRL is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (All Time) Calculated using the full available price history since May 25, 2022	0.37

VWO vs. PFRL - Sectors Allocation Comparison

Sectors	VWO	PFRL
Technology	29.6%	-
Financial Services	19.5%	-
Consumer Cyclical	10.7%	-
Industrials	8.0%	97.9%
Basic Materials	8.0%	-
Communication Services	7.1%	88.1%
Energy	4.6%	11.9%
Healthcare	3.9%	-
Consumer Defensive	3.7%	-
Utilities	2.9%	-
Real Estate	2.2%	-

Return for Risk

VWO vs. PFRL — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 47
VWO Sortino Ratio Rank: 47
VWO Omega Ratio Rank: 50
VWO Calmar Ratio Rank: 49
VWO Martin Ratio Rank: 51

PFRL

PFRL Risk / Return Rank: 92
PFRL Sharpe Ratio Rank: 94
PFRL Sortino Ratio Rank: 94
PFRL Omega Ratio Rank: 95
PFRL Calmar Ratio Rank: 89
PFRL Martin Ratio Rank: 87

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.

VWO vs. PFRL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and PGIM Floating Rate Income ETF (PFRL). 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.

	VWO	PFRL	Difference
Sharpe ratio: Return per unit of total volatility	1.49	3.19	-1.70
Sortino ratio: Return per unit of downside risk	2.08	4.59	-2.51
Omega ratio: Gain probability vs. loss probability	1.28	1.69	-0.41
Calmar ratio: Return relative to maximum drawdown	2.18	4.90	-2.71
Martin ratio: Return relative to average drawdown	7.79	16.66	-8.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWO vs. PFRL - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is lower than the PFRL Sharpe Ratio of 3.19. The chart below compares the historical Sharpe Ratios of VWO and PFRL, 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

	VWO	PFRL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	3.19	-1.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	1.66	-1.40

Drawdowns

VWO vs. PFRL - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than PFRL's maximum drawdown of -8.83%. Use the drawdown chart below to compare losses from any high point for VWO and PFRL.

Drawdown Indicators

	VWO	PFRL	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-8.83%	-58.85%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-1.25%	-9.92%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-8.83%	-8.54%
Max Drawdown (5Y) Largest decline over 5 years	-32.60%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	—	—
Current Drawdown Current decline from peak	-4.67%	-0.05%	-4.62%
Average Drawdown Average peak-to-trough decline	-15.81%	-0.44%	-15.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.12%	0.37%	+2.75%

Volatility

VWO vs. PFRL - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.29% compared to PGIM Floating Rate Income ETF (PFRL) at 0.42%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than PFRL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	PFRL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.29%	0.42%	+5.87%
Volatility (6M) Calculated over the trailing 6-month period	13.80%	1.58%	+12.22%
Volatility (1Y) Calculated over the trailing 1-year period	16.37%	1.93%	+14.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.45%	4.85%	+12.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.23%	4.85%	+14.38%

VWO vs. PFRL - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than PFRL's 0.72% expense ratio.

Dividends

VWO vs. PFRL - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.49%, less than PFRL's 6.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFRL PGIM Floating Rate Income ETF	6.83%	7.34%	8.96%	9.84%	3.55%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.49%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both VWO and PFRL in my portfolio?

VWO and PFRL have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWO or PFRL?

VWO has higher volatility (6.29%) compared to PFRL (0.42%). In terms of maximum drawdown, VWO dropped -67.68% vs PFRL's -8.83%.

Which ETF is better, VWO or PFRL?

On 3-year performance, VWO leads with 16.22% vs 8.62% for PFRL. On fees, VWO is cheaper at 0.08% per year. On volatility, PFRL has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or PFRL?

Over the 3-year period, VWO has performed better with a 16.22% return vs 8.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or PFRL?

VWO is cheaper with a 0.08% expense ratio, compared with 0.72% for PFRL.

Which ETF pays a higher dividend yield, VWO or PFRL?

PFRL has the higher dividend yield at 6.83%, compared with 2.49% for VWO.

What is the main difference between VWO and PFRL?

VWO is categorized as Emerging Markets Equities, while PFRL is Bank Loan. They also come from different issuers: Vanguard and PGIM. Their fees differ too: 0.08% for VWO and 0.72% for PFRL.

Which has better risk-adjusted returns?

PFRL currently has the higher Sharpe Ratio (3.19 vs 1.49), 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.