Income

Preferred Stock ETFs

Preferreds sit between debt and equity: bond-like income, equity-like drawdowns, and heavy concentration in banks and insurers. Call features cap upside, so most of these funds trade in a narrow band around par with a fat coupon.

Theme performance

Equal-weighted across every fund in this objective

1Y: +7.1%
5Y ann.: +2.3%
10Y ann.: —
All-time ann.: —

Sort4 funds

PFF

iShares Preferred and Income Securities ETF

iShares

The largest preferred fund: mostly bank and insurance issues, high income, equity-like drawdowns.

Fee: 0.46%
AUM: $14.1B
Yield: 6.4%

1Y: +7.4%
5Y ann.: +2.9%
10Y ann.: —
Max ann.: —

PGX

Invesco Preferred ETF

Invesco

Higher-quality, longer-duration preferreds; more rate sensitive than PFF.

Fee: 0.50%
AUM: $4.1B
Yield: 6.1%

1Y: +6.6%
5Y ann.: +1.4%
10Y ann.: —
Max ann.: —

PFFD

Global X US Preferred ETF

Global X

Broad preferred exposure at roughly half the fee of the incumbents.

Fee: 0.23%
AUM: $2.6B
Yield: 6.5%

1Y: +7.6%
5Y ann.: +3.1%
10Y ann.: —
Max ann.: —

PSK

SPDR ICE Preferred Securities ETF

SPDR

Investment-grade only preferreds, screening out the riskiest issuers.

Fee: 0.45%
AUM: $800M
Yield: 6.0%

1Y: +6.9%
5Y ann.: +1.9%
10Y ann.: —
Max ann.: —