INCM vs. PFF

Last updated Jun 3, 2026

INCM (Franklin Income Focus ETF) and PFF (iShares Preferred and Income Securities ETF) are both exchange-traded funds - INCM is a Diversified Portfolio fund actively managed by Franklin Templeton, while PFF is a Preferred Stock/Convertible Bonds fund tracking the S&P U.S. Preferred Stock Index. INCM is actively managed, while PFF is passively managed. Over the past year, INCM returned 16.64% vs 10.56% for PFF. A 0.63 correlation means they provide meaningful diversification when combined. INCM charges 0.38%/yr vs 0.46%/yr for PFF.

Performance

INCM vs. PFF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Income Focus ETF (INCM) and iShares Preferred and Income Securities ETF (PFF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, INCM achieves a 6.96% return, which is significantly higher than PFF's 3.62% return.

INCM

• 1D: 0.00%
• 1M: 0.53%
• YTD: 6.96%
• 6M: 7.85%
• 1Y: 16.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PFF

• 1D: 0.13%
• 1M: 0.54%
• YTD: 3.62%
• 6M: 4.28%
• 1Y: 10.56%
• 3Y*: 6.94%
• 5Y*: 1.66%
• 10Y*: 3.37%

*Multi-year figures are annualized to reflect compound growth (CAGR)

INCM vs. PFF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
INCM Franklin Income Focus ETF	6.96%	13.07%	6.80%	5.76%
PFF iShares Preferred and Income Securities ETF	3.62%	4.87%	7.24%	5.25%

Correlation

The correlation between INCM and PFF is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (All Time) Calculated using the full available price history since Jun 9, 2023	0.63

The correlation between INCM and PFF has been stable across timeframes, ranging from 0.63 to 0.63 - a consistent structural relationship.

INCM vs. PFF - Sectors Allocation Comparison

Sectors	INCM	PFF
Financial Services	8.2%	52.3%
Consumer Defensive	6.7%	1.2%
Utilities	4.9%	8.9%
Energy	3.8%	0.4%
Healthcare	2.6%	1.3%
Technology	2.4%	4.4%
Industrials	1.9%	5.5%
Basic Materials	1.9%	1.6%
Communication Services	1.7%	3.5%
Consumer Cyclical	1.5%	1.3%
Real Estate	0.0%	10.7%

Return for Risk

INCM vs. PFF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

INCM

INCM Risk / Return Rank: 91
INCM Sharpe Ratio Rank: 91
INCM Sortino Ratio Rank: 93
INCM Omega Ratio Rank: 92
INCM Calmar Ratio Rank: 88
INCM Martin Ratio Rank: 91

PFF

PFF Risk / Return Rank: 42
PFF Sharpe Ratio Rank: 45
PFF Sortino Ratio Rank: 46
PFF Omega Ratio Rank: 42
PFF Calmar Ratio Rank: 40
PFF Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

INCM vs. PFF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Income Focus ETF (INCM) and iShares Preferred and Income Securities ETF (PFF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	INCM	PFF	Difference
Sharpe ratio Return per unit of total volatility	3.20	1.58	+1.62
Sortino ratio Return per unit of downside risk	4.78	2.28	+2.50
Omega ratio Gain probability vs. loss probability	1.62	1.27	+0.34
Calmar ratio Return relative to maximum drawdown	5.27	1.99	+3.28
Martin ratio Return relative to average drawdown	22.29	6.18	+16.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

INCM vs. PFF - Sharpe Ratio Comparison

The current INCM Sharpe Ratio is 3.20, which is higher than the PFF Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of INCM and PFF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	INCM	PFF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.20	1.58	+1.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.16	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.27	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.54	0.21	+1.33

Drawdowns

INCM vs. PFF - Drawdown Comparison

The maximum INCM drawdown since its inception was -7.84%, smaller than the maximum PFF drawdown of -65.55%. Use the drawdown chart below to compare losses from any high point for INCM and PFF.

Drawdown Indicators

	INCM	PFF	Difference
Max Drawdown Largest peak-to-trough decline	-7.84%	-65.55%	+57.71%
Max Drawdown (1Y) Largest decline over 1 year	-3.19%	-5.28%	+2.09%
Max Drawdown (3Y) Largest decline over 3 years	—	-10.63%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-21.05%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.10%	—
Current Drawdown Current decline from peak	-0.27%	-0.45%	+0.18%
Average Drawdown Average peak-to-trough decline	-1.09%	-5.77%	+4.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.75%	1.70%	-0.95%

Volatility

INCM vs. PFF - Volatility Comparison

The current volatility for Franklin Income Focus ETF (INCM) is 1.72%, while iShares Preferred and Income Securities ETF (PFF) has a volatility of 2.03%. This indicates that INCM experiences smaller price fluctuations and is considered to be less risky than PFF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	INCM	PFF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.72%	2.03%	-0.31%
Volatility (6M) Calculated over the trailing 6-month period	3.81%	5.06%	-1.25%
Volatility (1Y) Calculated over the trailing 1-year period	5.22%	6.72%	-1.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.23%	10.30%	-3.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.23%	12.66%	-5.43%

INCM vs. PFF - Expense Ratio Comparison

INCM has a 0.38% expense ratio, which is lower than PFF's 0.46% expense ratio.

Dividends

INCM vs. PFF - Dividend Comparison

INCM's dividend yield for the trailing twelve months is around 5.06%, less than PFF's 5.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
INCM Franklin Income Focus ETF	5.06%	4.96%	5.06%	3.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PFF iShares Preferred and Income Securities ETF	5.43%	6.30%	6.32%	6.63%	6.01%	4.45%	4.79%	5.31%	6.32%	5.59%	5.85%	5.76%

Frequently Asked Questions

Can I hold both INCM and PFF in my portfolio?

INCM and PFF have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, INCM or PFF?

PFF has higher volatility (2.03%) compared to INCM (1.72%). In terms of maximum drawdown, INCM dropped -7.84% vs PFF's -65.55%.

Which ETF is better, INCM or PFF?

On 1-year performance, INCM leads with 16.64% vs 10.56% for PFF. On fees, INCM is cheaper at 0.38% per year. On volatility, INCM has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, INCM or PFF?

Over the 1-year period, INCM has performed better with a 16.64% return vs 10.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, INCM or PFF?

INCM is cheaper with a 0.38% expense ratio, compared with 0.46% for PFF.

Which ETF pays a higher dividend yield, INCM or PFF?

PFF has the higher dividend yield at 5.43%, compared with 5.06% for INCM.

What is the main difference between INCM and PFF?

INCM is categorized as Diversified Portfolio, while PFF is Preferred Stock/Convertible Bonds. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.38% for INCM and 0.46% for PFF.

Which has better risk-adjusted returns?

INCM currently has the higher Sharpe Ratio (3.20 vs 1.58), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.