What Is the PFF ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The iShares Preferred and Income Securities ETF (PFF) holds a broad range of preferred stocks listed on US exchanges and seeks high monthly dividend income, centered on the financial sector. Differences in expense ratios and interest rate sensitivity versus FPE, PFLD, and PGX are the key selection criteria.
SubscribeWhat Is the iShares Preferred and Income Securities ETF?
This is an income-focused ETF managed on the basis of the ICE preferred stock and hybrid securities index, which tracks preferred stocks and hybrid securities listed on US exchanges. It is diversified across hundreds of holdings and captures the overall movement of the preferred stock market.
It is suitable for income investors who want steady distribution income with lower volatility than common stocks.
It is a passively managed (index-tracking) ETF run by BlackRock (iShares).
How Do You Invest in the iShares Preferred and Income Securities ETF?
| Item | Details |
|---|---|
| Tracking Index | ICE Exchange-Listed Preferred and Hybrid Securities Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Regular (based on index rules) |
| Dividend Frequency | Monthly |
| Issuer | BlackRock (iShares) |
| Total Expense Ratio | 0.45% |
The fund selects exchange-listed preferred stocks and hybrid securities based on issue size, liquidity, and credit criteria, and holds them on a market-capitalization-weighted basis. The larger an issuer's weight, the greater its influence, and securities issued by the financial sector make up a considerable portion of the portfolio.
- Broad diversification across the preferred stock market
- Steady income flow through monthly distributions
iShares Preferred and Income Securities ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $11.7B, and the total expense ratio is 0.45% per year.
Compared with FPE, a similar preferred stock ETF, it differs in fees and management approach, and its strengths are broad diversification and abundant trading liquidity.
iShares Preferred and Income Securities ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangePreferred stocks react sensitively to the interest rate environment, so during periods of rate changes, prices and distribution yields tend to move together. It is an asset best approached from the perspective of accumulating income rather than short-term moves.
During rate-cut phases, money tends to flow into high-dividend and income assets, while during rate-hike periods, competition from bond yields can lead to weakness. Fund flows vary depending on market conditions.
iShares Preferred and Income Securities ETF Pros and Cons
Broad diversification and monthly income are its strengths, while interest rate sensitivity and concentration in the financial sector can work as drawbacks.
💪 Key Strengths
⚠️ Points to Watch
iShares Preferred and Income Securities ETF Alternative ETFs and Related Products
FPE, shown in the table, is a direct substitute in the same preferred and income category, differing in fees and management approach, and PFLD is a low-duration preferred stock ETF with reduced interest rate sensitivity. In addition, if you want low-cost, broad preferred stock exposure, you can also consider PGX, and if you prefer actively managed preferred stocks, CSPF is worth reviewing as well.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FPE | First Trust Preferred Securities and Income ETF | $16.96 | -0.1% | $5.8B | 0.83% | 6.38% | -7.8% |
 PCEF | Invesco CEF Income Composite ETF | $19.15 | -1.2% | $751.0M | 2.71% | 7.79% | -4.1% |
 YYY | Amplify CEF High Income ETF | $10.30 | -0.8% | $672.9M | 3.23% | 13.98% | -12.1% |
 PFLD | AAM Low Duration Preferred and Income Securities ETF | $19.04 | -0.3% | $372.6M | 0.45% | 5.6% | -3.2% |
 CSPF | Cohen & Steers Preferred and Income Opportunities Active ETF | $25.10 | -0.2% | $372.5M | 0.59% | 5.83% | -3.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| BA | Boeing Co | 0.08% | $171.55 | -0.6% | $135.9B | 18.9 | 0.02% |
| MSTR | Strategy Inc | 0.04% | $130.51 | -7.8% | $55.1B | - | - |
| ORCL | Oracle Corp | 0.05% | $130.67 | -6.4% | $395.1B | 20.5 | 1.51% |
| WFC | Wells Fargo & Co | 0.05% | $83.40 | -1.7% | $250.4B | 11.8 | 2.28% |
 ALB | Albemarle Corp | 0.02% | $91.00 | -2.4% | $10.7B | - | 1.77% |
| HPE | Hewlett Packard Enterprise Co | 0.02% | $55.09 | -6.4% | $73.1B | 28.7 | 1.03% |
iShares Preferred and Income Securities ETF Investor Checkpoints
These are the points to review before investing in PFF. Although it is a preferred stock income asset, it is advisable to check the expense ratio, interest rate sensitivity, financial sector concentration, and currency exposure before buying. Please go through the items below one by one.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative impact over long-term holding | Annual fee applies |
| 📈 Interest Rate Environment | How the direction of rates affects price and yield | Needs checking |
| 🏦 Sector Concentration | Trend in financial sector issuance weight | Large financial weight |
| 💱 Exchange Rate | Effect on returns converted into won | No currency hedge |
Price declines during rate-hike periods and concentration in the financial sector are the main sources of volatility. Preferred stocks are less volatile than common stocks, but liquidity can dry up during market shocks.
This is a preferred stock ETF suited to investors who want monthly income and broad diversification. To reduce interest rate sensitivity, consider the low-duration PFLD, and to compare fees and management approach, it is recommended to review similar preferred stock ETFs such as FPE and PGX before choosing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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