PFFD vs. USHY

Last updated Jun 13, 2026

PFFD (Global X U.S. Preferred ETF) and USHY (iShares Broad USD High Yield Corporate Bond ETF) are both exchange-traded funds - PFFD is a Preferred Stock/Convertible Bonds fund tracking the ICE BofAML Diversified Core U.S. Preferred Securities Index, while USHY is a High Yield Bonds fund tracking the ICE BofA US High Yield Constrained Index. Both are passively managed. Over the past 5 years, PFFD returned -0.25%/yr vs 4.21%/yr for USHY. A 0.60 correlation means they provide meaningful diversification when combined. PFFD charges 0.23%/yr vs 0.15%/yr for USHY.

Performance

PFFD vs. USHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X U.S. Preferred ETF (PFFD) and iShares Broad USD High Yield Corporate Bond ETF (USHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFFD achieves a 2.18% return, which is significantly higher than USHY's 1.75% return.

PFFD

• 1D: 0.27%
• 1M: -0.58%
• YTD: 2.18%
• 6M: 2.18%
• 1Y: 7.19%
• 3Y*: 5.67%
• 5Y*: -0.25%
• 10Y*: —

USHY

• 1D: 0.03%
• 1M: 0.59%
• YTD: 1.75%
• 6M: 2.37%
• 1Y: 6.90%
• 3Y*: 8.94%
• 5Y*: 4.21%
• 10Y*: —

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

PFFD vs. USHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFFD Global X U.S. Preferred ETF	2.18%	3.22%	7.07%	6.85%	-20.20%	5.07%	8.90%	17.43%	-3.94%	0.77%
USHY iShares Broad USD High Yield Corporate Bond ETF	1.75%	8.81%	8.45%	12.73%	-11.18%	5.02%	6.17%	14.24%	-2.41%	0.16%

Correlation

The correlation between PFFD and USHY is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Oct 26, 2017	0.60

The correlation between PFFD and USHY has been stable across timeframes, ranging from 0.60 to 0.70 - a consistent structural relationship.

PFFD vs. USHY - Sectors Allocation Comparison

Sectors	PFFD	USHY
Financial Services	59.0%	-
Utilities	15.1%	-
Technology	6.5%	-
Industrials	5.6%	-
Communication Services	4.4%	-
Real Estate	4.0%	0.8%
Basic Materials	3.0%	-
Consumer Cyclical	1.6%	-
Healthcare	1.0%	-
Consumer Defensive	-	-
Energy	-	99.2%

Return for Risk

PFFD vs. USHY — Risk / Return Rank

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

PFFD

PFFD Risk / Return Rank: 29
PFFD Sharpe Ratio Rank: 31
PFFD Sortino Ratio Rank: 30
PFFD Omega Ratio Rank: 28
PFFD Calmar Ratio Rank: 28
PFFD Martin Ratio Rank: 29

USHY

USHY Risk / Return Rank: 71
USHY Sharpe Ratio Rank: 66
USHY Sortino Ratio Rank: 73
USHY Omega Ratio Rank: 71
USHY Calmar Ratio Rank: 65
USHY Martin Ratio Rank: 77

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.

PFFD vs. USHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X U.S. Preferred ETF (PFFD) and iShares Broad USD High Yield Corporate Bond ETF (USHY). 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.

	PFFD	USHY	Difference
Sharpe ratio: Return per unit of total volatility	0.99	1.88	-0.89
Sortino ratio: Return per unit of downside risk	1.44	2.83	-1.39
Omega ratio: Gain probability vs. loss probability	1.17	1.36	-0.19
Calmar ratio: Return relative to maximum drawdown	1.21	2.85	-1.64
Martin ratio: Return relative to average drawdown	3.55	12.77	-9.22

PFFD vs. USHY - Sharpe Ratio Comparison

The current PFFD Sharpe Ratio is 0.99, which is lower than the USHY Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of PFFD and USHY, 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

PFFD vs. USHY - Drawdown Comparison

The maximum PFFD drawdown since its inception was -30.93%, which is greater than USHY's maximum drawdown of -22.44%. Use the drawdown chart below to compare losses from any high point for PFFD and USHY.

Drawdown Indicators

	PFFD	USHY	Difference
Max Drawdown Largest peak-to-trough decline	-30.93%	-22.44%	-8.49%
Max Drawdown (1Y) Largest decline over 1 year	-5.97%	-2.43%	-3.54%
Max Drawdown (3Y) Largest decline over 3 years	-10.84%	-4.66%	-6.18%
Max Drawdown (5Y) Largest decline over 5 years	-24.45%	-15.56%	-8.89%
Current Drawdown Current decline from peak	-3.78%	0.00%	-3.78%
Average Drawdown Average peak-to-trough decline	-6.58%	-2.66%	-3.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	0.54%	+1.49%

Volatility

PFFD vs. USHY - Volatility Comparison

Global X U.S. Preferred ETF (PFFD) has a higher volatility of 2.15% compared to iShares Broad USD High Yield Corporate Bond ETF (USHY) at 1.20%. This indicates that PFFD's price experiences larger fluctuations and is considered to be riskier than USHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFFD	USHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.15%	1.20%	+0.95%
Volatility (6M) Calculated over the trailing 6-month period	5.40%	2.96%	+2.44%
Volatility (1Y) Calculated over the trailing 1-year period	7.29%	3.69%	+3.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.99%	7.35%	+3.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.74%	8.24%	+4.50%

PFFD vs. USHY - Expense Ratio Comparison

PFFD has a 0.23% expense ratio, which is higher than USHY's 0.15% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

PFFD vs. USHY - Dividend Comparison

PFFD's dividend yield for the trailing twelve months is around 6.38%, less than USHY's 6.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFFD Global X U.S. Preferred ETF	6.38%	6.37%	6.42%	6.49%	6.63%	5.09%	5.17%	5.48%	6.21%	1.94%
USHY iShares Broad USD High Yield Corporate Bond ETF	6.90%	6.79%	6.89%	6.63%	6.08%	5.07%	5.30%	5.92%	6.30%	0.73%

Frequently Asked Questions

Can I hold both PFFD and USHY in my portfolio?

PFFD and USHY have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFFD or USHY?

PFFD has higher volatility (2.15%) compared to USHY (1.20%). In terms of maximum drawdown, PFFD dropped -30.93% vs USHY's -22.44%.

Which ETF is better, PFFD or USHY?

On 5-year performance, USHY leads with 4.21% vs -0.25% for PFFD. On fees, USHY is cheaper at 0.15% per year. On volatility, USHY has been the lower-risk option at 1.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFFD or USHY?

Over the 5-year period, USHY has performed better with a 4.21% return vs -0.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFFD or USHY?

USHY is cheaper with a 0.15% expense ratio, compared with 0.23% for PFFD.

Which ETF pays a higher dividend yield, PFFD or USHY?

USHY has the higher dividend yield at 6.90%, compared with 6.38% for PFFD.

What is the main difference between PFFD and USHY?

PFFD is categorized as Preferred Stock/Convertible Bonds, while USHY is High Yield Bonds. PFFD tracks ICE BofAML Diversified Core U.S. Preferred Securities Index, while USHY tracks ICE BofA US High Yield Constrained Index. They also come from different issuers: Global X and iShares. Their fees differ too: 0.23% for PFFD and 0.15% for USHY.

Which has better risk-adjusted returns?

USHY currently has the higher Sharpe Ratio (1.88 vs 0.99), 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.