LFT vs. PFFV

Last updated Jun 26, 2026

LFT (Lument Finance Trust, Inc.) is a stock, while PFFV (Global X Variable Rate Preferred ETF) is Preferred Stock/Convertible Bonds fund tracking the ICE U.S. Variable Rate Preferred Securities Index. Over the past 5 years, LFT returned -15.20%/yr vs 1.92%/yr for PFFV. At a 0.15 correlation, their price movements are largely independent.

Performance

LFT vs. PFFV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Lument Finance Trust, Inc. (LFT) and Global X Variable Rate Preferred ETF (PFFV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LFT achieves a -22.40% return, which is significantly lower than PFFV's 2.14% return.

LFT

• 1D: 0.95%
• 1M: 0.00%
• YTD: -22.40%
• 6M: -22.91%
• 1Y: -48.08%
• 3Y*: -7.05%
• 5Y*: -15.20%
• 10Y*: -2.54%

PFFV

• 1D: -0.07%
• 1M: -0.81%
• YTD: 2.14%
• 6M: 1.98%
• 1Y: 3.88%
• 3Y*: 7.44%
• 5Y*: 1.92%
• 10Y*: —

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

LFT vs. PFFV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
LFT Lument Finance Trust, Inc.	-22.40%	-39.33%	29.40%	38.64%	-45.07%	28.63%	36.42%
PFFV Global X Variable Rate Preferred ETF	2.14%	2.08%	9.45%	10.64%	-13.81%	6.35%	13.36%

Correlation

The correlation between LFT and PFFV is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (All Time) Calculated using the full available price history since Jun 24, 2020	0.15

Return for Risk

LFT vs. PFFV — Risk / Return Rank

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

LFT

LFT Risk / Return Rank: 7
LFT Sharpe Ratio Rank: 5
LFT Sortino Ratio Rank: 6
LFT Omega Ratio Rank: 7
LFT Calmar Ratio Rank: 8
LFT Martin Ratio Rank: 11

PFFV

PFFV Risk / Return Rank: 27
PFFV Sharpe Ratio Rank: 28
PFFV Sortino Ratio Rank: 27
PFFV Omega Ratio Rank: 25
PFFV Calmar Ratio Rank: 27
PFFV Martin Ratio Rank: 27

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.

LFT vs. PFFV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lument Finance Trust, Inc. (LFT) and Global X Variable Rate Preferred ETF (PFFV). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LFT	PFFV	Difference
Sharpe ratio: Return per unit of total volatility	-1.02	0.92	-1.95
Sortino ratio: Return per unit of downside risk	-1.58	1.35	-2.94
Omega ratio: Gain probability vs. loss probability	0.82	1.16	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.88	1.21	-2.08
Martin ratio: Return relative to average drawdown	-1.36	3.35	-4.71

LFT vs. PFFV - Sharpe Ratio Comparison

The current LFT Sharpe Ratio is -1.02, which is lower than the PFFV Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of LFT and PFFV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LFT vs. PFFV - Drawdown Comparison

The maximum LFT drawdown since its inception was -81.57%, which is greater than PFFV's maximum drawdown of -18.96%. Use the drawdown chart below to compare losses from any high point for LFT and PFFV.

Drawdown Indicators

	LFT	PFFV	Difference
Max Drawdown Largest peak-to-trough decline	-81.57%	-18.96%	-62.61%
Max Drawdown (1Y) Largest decline over 1 year	-55.07%	-3.23%	-51.84%
Max Drawdown (3Y) Largest decline over 3 years	-59.51%	-6.07%	-53.44%
Max Drawdown (5Y) Largest decline over 5 years	-59.51%	-18.96%	-40.55%
Max Drawdown (10Y) Largest decline over 10 years	-77.00%	—	—
Current Drawdown Current decline from peak	-58.89%	-1.07%	-57.82%
Average Drawdown Average peak-to-trough decline	-33.03%	-4.15%	-28.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.47%	1.16%	+34.31%

Volatility

LFT vs. PFFV - Volatility Comparison

Lument Finance Trust, Inc. (LFT) has a higher volatility of 12.15% compared to Global X Variable Rate Preferred ETF (PFFV) at 1.22%. This indicates that LFT's price experiences larger fluctuations and is considered to be riskier than PFFV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LFT	PFFV	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.15%	1.22%	+10.93%
Volatility (6M) Calculated over the trailing 6-month period	32.88%	2.97%	+29.91%
Volatility (1Y) Calculated over the trailing 1-year period	47.17%	4.23%	+42.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.32%	8.86%	+26.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.51%	8.65%	+32.86%

Dividends

LFT vs. PFFV - Dividend Comparison

LFT's dividend yield for the trailing twelve months is around 16.98%, more than PFFV's 8.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LFT Lument Finance Trust, Inc.	16.98%	15.60%	15.50%	11.16%	12.63%	9.38%	11.16%	9.13%	9.79%	13.75%	41.20%	24.73%
PFFV Global X Variable Rate Preferred ETF	8.18%	8.26%	7.33%	7.17%	6.60%	5.23%	2.29%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LFT and PFFV in my portfolio?

LFT and PFFV have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LFT or PFFV?

LFT has higher volatility (12.15%) compared to PFFV (1.22%). In terms of maximum drawdown, LFT dropped -81.57% vs PFFV's -18.96%.

Which has better risk-adjusted returns?

PFFV currently has the higher Sharpe Ratio (0.92 vs -1.02), 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.