PFF: broad index exposure
PFF tracks U.S. dollar-denominated preferred and hybrid securities. It reports the largest asset base and holdings count here, but breadth does not remove credit, rate, sector, or call risk.
Reviewed by Ashish Hirpara · September 12, 2026
Preferred-stock ETFs: compare structure, yield, and risk
There is no universal winner in this three-fund snapshot. PFFD has the lowest stated expense ratio and highest dated SEC yield, PFF is the largest and broadest by reported holdings, and FPE uses an active mandate that also includes income-producing debt. Those are factual distinctions—not recommendations.
Ashish Hirpara approved the exact PFF/PFFD/FPE evidence and this rendered page on 2026-09-12. All metrics are issuer-reported, carry their own effective dates, and are not independently verified.
Accepted private cohort
Three different ways to access preferred income
The dates under each value matter: this is not a same-day market screen. The SEC yield is a standardized recent-income measure; the trailing distribution yield describes past cash distributions. Neither predicts future cash or return.
| Fund | Approach | Expense | SEC yield | Trailing 12m distribution yield | 1y NAV total return | Net assets | Holdings |
|---|---|---|---|---|---|---|---|
| PFFiShares Preferred and Income Securities ETFMonthly · Inception 2007-03-26 | indexTracks an index of U.S. dollar-denominated preferred and hybrid securities. | 0.45%Issuer page; date not stated | 6.52%2026-07-31 | 5.51%2026-07-31 | 5.53%through 2026-06-30 | $12.90B2026-09-04 | 4592026-09-04 |
| PFFDGlobal X U.S. Preferred ETFMonthly · Inception 2017-09-11 | indexTracks the ICE BofA Diversified Core U.S. Preferred Securities Index for broad benchmark-like exposure. | 0.23%2026-09-11 | 6.68%2026-09-11 | 6.82%2026-09-11 | 5.99%through 2026-06-30 | $2.12B2026-09-11 | 2202026-09-10 |
| FPEFirst Trust Preferred Securities and Income ETFMonthly · Inception 2013-02-11 | activeActively manages preferred securities and income-producing debt, including corporate, high-yield, and convertible securities. | 0.83%2026-03-02 | 5.84%2026-08-31 | 5.98%2026-08-31 | 4.08%through 2026-08-31 | $6.22B2026-09-11 | 2622026-09-10 |
Strategy map
The ticker is not the whole exposure
PFFD: lower-cost index exposure
PFFD tracks a diversified U.S. preferred-securities index and reports the lowest expense ratio in this snapshot. A lower fee does not establish better future return or a safer portfolio.
FPE: active, broader income mandate
FPE actively manages preferred securities plus income-producing debt, including corporate, high-yield, and convertible securities. Its results therefore reflect manager decisions and a wider mandate, not just a preferred-stock index.
Capital and return context
Income can arrive while NAV falls
Preferred securities are hybrid claims. They commonly rank below bonds and above common equity, but their exact rights depend on the issue. Prices can fall when rates rise, credit conditions weaken, concentrated issuers or sectors struggle, or an expected call is delayed. Compare cash paid with NAV and total return over the same period; a distribution by itself is not profit.
Decision sequence
Six checks before comparing yield
- Read the mandate: index or active, and preferred-only or broader income securities.
- Inspect issuer, sector, credit-quality, and individual-security concentration.
- Review fixed versus variable rates, duration exposure, and sensitivity to changing rates.
- Check call, redemption, extension, conversion, and suspension terms.
- Compare expense, cash distributions, NAV movement, and total return over matching dates.
- Confirm distribution variability and tax character from current fund documents.
Important boundary
This is a strategy guide, not three scorecards
PFF, PFFD, and FPE are not in TopETFList’s fixed public reviewed-scorecard registry. This page does not grade them, declare them suitable, or turn their accepted evidence into public scorecard eligibility. Any registry expansion requires separate approval.
Read the methodology →Preferred-stock ETF questions
What is a preferred-stock ETF?
A preferred-stock ETF holds a portfolio of preferred or hybrid securities. These securities commonly sit below an issuer’s bonds but above common stock in the capital structure, so their income and risk do not behave exactly like either asset class.
Is the highest preferred ETF yield automatically the best choice?
No. SEC yield and trailing distribution yield use different conventions and neither is a total-return forecast. Compare strategy, credit and sector exposure, rate sensitivity, call terms, fees, NAV movement, and matching-period total return.
Are preferred ETF distributions qualified dividends?
Tax character can vary by security, fund, account, and distribution. Review the fund’s current tax documents and your own tax circumstances rather than assuming every payment receives qualified-dividend treatment.
Official fund records
Sources for this candidate
This review candidate is educational and does not recommend an ETF. Read each fund’s current prospectus, holdings, distribution notices, and tax documents. See the methodology and financial disclaimer.