Average Daily Volume
4.16M
Fund Overview
The iShares Preferred and Income Securities ETF (PFF) is designed to track the investment results of an index composed of U.S. preferred stocks and hybrid securities. These securities typically offer higher dividend yields than common stocks and are issued by financial institutions, utilities, and other corporations. PFF provides investors with exposure to a diversified portfolio of preferred securities, which can serve as a source of income in a low-yield environment. The fund is one of the largest and most liquid ETFs in the preferred stock category, making it a popular choice for income-focused investors.
- Asset Class
-
Preferred Stock
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 6.20 %
- Currency Hedged
-
No
- Portfolio Turnover
-
21 %
- Dividend Date
-
Why Invest in the PFF ETF?
Potential Benefits
- High dividend yield compared to common stocks, making it attractive for income-seeking investors.
- Diversification across sectors, with a focus on financials and utilities, which are major issuers of preferred securities.
- Liquidity and transparency due to its ETF structure, allowing for easy trading throughout the day.
- Lower volatility than common stocks, as preferred securities often behave more like bonds.
- Exposure to a unique asset class that can complement traditional fixed-income and equity portfolios.
Potential Risks
- Interest rate sensitivity: Preferred securities can lose value when interest rates rise.
- Credit risk: Issuers may suspend or reduce dividend payments, especially during financial distress.
- Limited capital appreciation potential compared to common stocks.
- Concentration in financials, which can expose the fund to sector-specific risks.
- Call risk: Issuers may redeem preferred securities at par value, limiting upside for investors.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+2.4%
|
-0.3%
|
-3.4%
|
+4.2%
|
+0.8%
|
-3.0%
|
+0.4%
|
+0.4%
|
-2.6%
|
+0.7%
|
-
|
-
|
| 2025 |
+1.2%
|
+0.7%
|
-3.0%
|
-1.2%
|
+0.7%
|
+2.1%
|
+2.4%
|
+1.2%
|
+1.0%
|
-0.8%
|
-0.3%
|
+0.8%
|
| 2024 |
+2.8%
|
+0.9%
|
+0.7%
|
-3.5%
|
+3.1%
|
-0.1%
|
+1.0%
|
+2.6%
|
+3.2%
|
-0.7%
|
+0.8%
|
-3.6%
|
| 2023 |
+10.1%
|
-2.1%
|
-4.0%
|
+1.1%
|
-2.4%
|
+2.1%
|
+1.5%
|
-1.0%
|
-1.5%
|
-4.7%
|
+7.9%
|
+2.9%
|
| 2022 |
-4.5%
|
-3.0%
|
+0.4%
|
-6.4%
|
+2.7%
|
-5.0%
|
+6.2%
|
-3.8%
|
-4.4%
|
-3.2%
|
+5.0%
|
-2.9%
|
| 2021 |
-1.7%
|
-0.9%
|
+3.2%
|
+1.2%
|
+0.8%
|
+1.7%
|
+0.6%
|
+0.3%
|
-1.1%
|
+1.8%
|
-2.1%
|
+3.3%
|
| 2020 |
+1.5%
|
-4.5%
|
-11.9%
|
+9.5%
|
+1.9%
|
-0.9%
|
+5.0%
|
+1.9%
|
-0.2%
|
-0.2%
|
+4.6%
|
+2.6%
|
| 2019 |
+5.6%
|
+0.6%
|
+1.5%
|
+0.7%
|
+0.3%
|
+1.3%
|
+1.8%
|
+0.6%
|
+0.8%
|
+0.4%
|
-0.4%
|
+1.9%
|
| 2018 |
-1.2%
|
+0.3%
|
+0.5%
|
-0.7%
|
+0.8%
|
+1.8%
|
+0.2%
|
+1.4%
|
-1.7%
|
-2.2%
|
-2.2%
|
-1.5%
|
| 2017 |
+2.4%
|
+2.1%
|
+0.5%
|
+1.3%
|
+0.6%
|
+0.8%
|
+0.7%
|
-0.1%
|
-0.2%
|
-0.4%
|
+0.7%
|
-0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: PFF vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
PFF seeks to track the S&P U.S. Preferred Stock Index, which measures the performance of U.S.-traded preferred stocks and hybrid securities. The index is market-cap weighted, meaning larger issuances have a greater impact on the fund's performance. The fund primarily holds preferred stocks, which are a type of equity that pays fixed or floating dividends and has priority over common stock in dividend payments and liquidation. PFF is passively managed and rebalanced quarterly to align with the index composition.
Frequently Asked Questions
What types of securities does PFF hold?
PFF primarily holds U.S.-traded preferred stocks and hybrid securities, which are issued by corporations, financial institutions, and utilities.
How often does PFF pay dividends?
PFF pays dividends monthly, providing a steady income stream for investors.
Is PFF suitable for conservative investors?
While PFF offers higher yields, it carries risks such as interest rate sensitivity and credit risk, so it may not be suitable for very conservative investors.
How does PFF perform during market downturns?
Preferred stocks, like those in PFF, tend to be less volatile than common stocks but can still decline during severe market stress, especially if issuers face financial difficulties.
Industry Overview
The iShares Preferred and Income Securities ETF (PFF) provides exposure to the preferred stock market, a hybrid asset class that combines features of both equities and fixed income. Preferred stocks typically offer higher yields than common stocks and bonds, making them appealing for income-focused investors. The financial sector is the largest issuer of preferred securities, followed by utilities and REITs. PFF allows investors to access this niche market with the liquidity and transparency of an ETF, offering a convenient way to diversify income streams beyond traditional bonds and dividend stocks.
Alternative Comparison
Compared to PGX (Invesco Preferred ETF), PFF offers a slightly lower expense ratio and broader exposure to the preferred stock market. Unlike PFXF (VanEck Preferred Securities ex Financials ETF), which excludes financial sector preferreds, PFF includes financial issuers, making it more representative of the overall preferred market. PFFD (Global X U.S. Preferred ETF) is another peer, but PFF tends to be more liquid and widely traded.
Issuer Overview
PFF is issued by iShares, a leading provider of ETFs under the BlackRock umbrella. iShares is known for its extensive range of index-tracking ETFs, offering investors low-cost access to various asset classes and market segments. With over $2 trillion in assets under management, iShares is one of the most trusted names in the ETF industry.
Conclusion
PFF is a well-established ETF for investors seeking high-yielding preferred securities with the convenience of an exchange-traded fund. Its focus on income, diversification, and liquidity makes it a compelling option for those looking to enhance portfolio yield while managing risk. However, investors should be mindful of interest rate sensitivity and sector concentration when considering this fund.
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