Preferred Stock/Convertible Bonds ETFs invest in preferred stocks and convertible bonds, providing investors with exposure to hybrid securities that combine features of stocks and bonds. These ETFs offer potential benefits like higher income compared to common stocks and the possibility of capital appreciation through conversion to common shares. However, they may carry additional risks compared to traditional bond investments.

Preferred Stock/Convertible Bonds

NasdaqGM

NPFI

NYSEArca

PRFD

The Invesco Variable Rate Preferred ETF seeks to track an index of U.S.-dollar-denominated preferred securities with variable or floating-rate characteristics.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
NPFI	Nuveen Preferred And Income ETF	2.39	—	—	81
PRFD	PIMCO Preferred And Capital Securities Active Exch...	2.12	—	—	73
VRP	Invesco Variable Rate Preferred ETF	2.05	0.65	0.35	76
FPEI	First Trust Institutional Preferred Securities & I...	2.01	0.69	—	76
JHPI	John Hancock Preferred Income ETF	1.92	—	—	69

Top Preferred Stock/Convertible Bonds ETFs by Sharpe Ratio

Top Preferred Stock/Convertible Bonds ETFs by Sharpe Ratio