PGX ETF: What Is It? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
The Invesco Preferred ETF (PGX) holds a broad portfolio of US dollar-denominated preferred stocks. Its monthly distributions, price outlook tied to interest rate direction, and financial sector weighting are the key criteria for an investment decision, and it is also worth comparing its fees against similar preferred stock products.
SubscribeWhat Is the Invesco Preferred ETF?
This is a preferred stock ETF that tracks the ICE BofA Core Plus Fixed Rate Preferred Securities Index. It holds US-listed, dollar-denominated preferred stocks on a market-cap-weighted basis, and it includes both investment-grade and below-investment-grade issues to raise its income level.
It suits income-focused investors who want lower volatility than stocks along with a regular cash flow.
It is a passively managed (index-tracking) ETF run by Invesco.
How Does the Invesco Preferred ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | ICE BofA Core Plus Fixed Rate Preferred Securities Index |
| Management Style | Passive (index-tracking) |
| Issuer | Invesco |
| Rebalancing Frequency | Monthly |
| Dividend/Distribution Frequency | Monthly distributions |
| Total Expense Ratio | 0.50% |
The fund holds US-listed, dollar-denominated fixed-rate preferred securities at their index weights. Besides traditional preferred stocks, eligible holdings include foreign preferred shares in depositary receipt form and securities with subordinated-debt characteristics. Turnover is low, and the fund is managed by reflecting only changes in the index composition.
- A broad holding range centered on fixed-rate preferred securities
- Monthly distributions provide a shorter cash flow cycle
- Simple index-tracking management with low turnover
Invesco Preferred ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $3.6B, and the total expense ratio is 0.50% per year.
Preferred stocks sit between stocks and bonds, so they react sensitively to interest rate movements. Rather than buying thinly traded individual preferred stocks directly, diversifying through an ETF is more convenient in terms of accessibility.
Invesco Preferred ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeGiven the nature of fixed-rate preferred securities, prices have tended to be pressured when market rates rise and to recover when rates fall. In exchange for steady distributions, price movements are heavily dependent on the direction of interest rates.
When demand for income is strong, money tends to flow into preferred stock ETFs as a group, and once bond yields rise high enough, money tends to move over to bonds. Outflows can also occur when credit concerns about the financial sector intensify.
Invesco Preferred ETF Strengths and Weaknesses
Its strengths are monthly distributions and broad preferred stock diversification, while its weaknesses are interest rate sensitivity and financial sector concentration.
💪 Key Strengths
⚠️ Points to Watch
Invesco Preferred ETF Alternative ETFs and Related Products
The VRP ETF shown in the table is a floating-rate preferred stock product managed by Invesco as well, so its behavior in rising-rate periods differs. PFXF has a composition that excludes financial issuers, and PFFD is an alternative that emphasizes a lower fee. You may also want to compare PFF, the flagship preferred stock product, and the actively managed FPE on fees, fund size, and holding range.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 AMLP | Alerian MLP ETF | $54.06 | +0.3% | $13.0B | 1.01% | 7.53% | +15.2% |
 VRP | Invesco Variable Rate Preferred ETF | $23.59 | +0.0% | $3.0B | 0.50% | 5.93% | -4.5% |
 MLPA | Global X MLP ETF | $55.88 | +0.9% | $2.4B | 0.77% | 7.19% | +15.6% |
 PFXF | VanEck Preferred Securities ex Financials ETF | $16.66 | -1.2% | $2.2B | 0.40% | 6.37% | -5.9% |
 PFFD | Global X U.S. Preferred ETF | $16.97 | -0.8% | $1.8B | 0.23% | 7.07% | -11.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| JPM | JPMorgan Chase & Co | 0.12% | $337.04 | -1.9% | $895.9B | 14.1 | 1.9% |
| WFC | Wells Fargo & Co | 0.03% | $83.40 | -1.7% | $250.4B | 11.8 | 2.28% |
Invesco Preferred ETF Investor Checkpoints
It is easy to approach preferred stock ETFs by looking only at the dividend yield, but you should first understand how prices respond to interest rates. Here are four items to check before buying this ETF.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check cumulative costs over a long holding period | High relative to the category average |
| 📉 Interest Rate Sensitivity | Check how prices respond to rate direction | Fixed-rate structure |
| 🏦 Sector Composition | Check the share of financial issuers | Large financial weighting |
| 📅 Distribution Frequency | Check whether it fits your cash flow plan | Monthly distributions maintained |
When rates are rising, price declines can offset the distributions you receive. When credit stress in the financial sector grows, there are also periods when preferred stocks swing later than common stocks but more sharply than bonds.
It is worth considering if you want a regular cash flow and have a falling-rate environment in mind. If financial concentration is a concern, compare it with PFXF, and if you need protection against rising rates, compare it with VRP as well.
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 September 3, 2026.
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