PFF vs. TLT
PFF (iShares Preferred and Income Securities ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - PFF is a Preferred Stock fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, PFF returned 2.93%/yr vs -2.38%/yr for TLT. Their 0.04 correlation means their historical movements had little consistent relationship. PFF charges 0.46%/yr vs 0.15%/yr for TLT.
Performance
PFF vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, PFF achieves a 0.89% return, which is significantly higher than TLT's -3.49% return. Over the past 10 years, PFF has outperformed TLT with an annualized return of 2.93%, while TLT has yielded a comparatively lower -2.38% annualized return.
PFF
- 1D
- 0.10%
- 1M
- -0.03%
- 6M
- -1.43%
- YTD
- 0.89%
- 1Y
- 3.06%
- 3Y*
- 5.64%
- 5Y*
- 0.71%
- 10Y*
- 2.93%
- ALL TIME*
- 3.72%
TLT
- 1D
- -0.66%
- 1M
- -3.81%
- 6M
- -3.46%
- YTD
- -3.49%
- 1Y
- -2.45%
- 3Y*
- -1.80%
- 5Y*
- -8.18%
- 10Y*
- -2.38%
- ALL TIME*
- 3.47%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $85.47M | $81.60M | $92.33M | |
| $2.33B | $2.02B | $2.19B |
PFF vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 0.89% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
TLT iShares 20+ Year Treasury Bond ETF | -3.49% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between PFF and TLT is 0.37, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.37 |
Correlation (3Y) Balances recent behavior with more history. | 0.49 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.40 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.25 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2007 | 0.04 |
Over the past year, PFF and TLT have become more correlated (0.37) than their long-term average of 0.04, meaning their price movements have been converging.
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Return for Risk
PFF vs. TLT — Risk / Return Rank
PFF
TLT
PFF vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Preferred and Income Securities ETF (PFF) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| PFF | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.51 | ||
| Sortino ratioReturn per unit of downside risk | +0.70 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 0.99 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 0.55 | -0.14 | +0.69 |
| Martin ratioReturn relative to average drawdown | 1.42 | -0.30 | +1.71 |
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Drawdowns
PFF vs. TLT - Drawdown Comparison
The maximum PFF drawdown since its inception was -65.55%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for PFF and TLT.
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Drawdown Indicators
| PFF | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.55% | -48.35% | -17.20% |
Max Drawdown (1Y)Largest decline over 1 year | -5.28% | -7.74% | +2.46% |
Max Drawdown (3Y)Largest decline over 3 years | -10.63% | -14.79% | +4.16% |
Max Drawdown (5Y)Largest decline over 5 years | -21.05% | -43.70% | +22.65% |
Max Drawdown (10Y)Largest decline over 10 years | -34.10% | -48.35% | +14.25% |
Current DrawdownCurrent decline from peak | -3.07% | -42.36% | +39.29% |
Average DrawdownAverage peak-to-trough decline | -5.74% | -13.99% | +8.25% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.05% | 3.57% | -1.52% |
Volatility
PFF vs. TLT - Volatility Comparison
iShares Preferred and Income Securities ETF (PFF) has a higher volatility of 2.60% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.46%. This indicates that PFF's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PFF | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.60% | 2.46% | +0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 5.87% | 6.85% | -0.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.31% | 9.32% | -2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.40% | 15.74% | -5.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.70% | 14.83% | -2.13% |
PFF vs. TLT - Expense Ratio Comparison
PFF has a 0.46% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
PFF vs. TLT - Dividend Comparison
PFF's dividend yield for the trailing twelve months is around 5.50%, more than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 4.97% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
TLT iShares 20+ Year Treasury Bond ETF | 4.34% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
PFF and TLT have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PFF has higher volatility (2.60%) compared to TLT (2.46%). In terms of maximum drawdown, PFF dropped -65.55% vs TLT's -48.35%.
On 10-year performance, PFF leads with 2.93% vs -2.38% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, TLT has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PFF has performed better with a 2.93% return vs -2.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.46% for PFF.
PFF has the higher dividend yield at 4.97%, compared with 4.34% for TLT.
PFF is categorized as Preferred Stock, while TLT is Government Bonds. PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.46% for PFF and 0.15% for TLT.
PFF currently has the higher Sharpe Ratio (0.40 vs -0.11), 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.
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