PFFL vs. USML

Last updated Jun 4, 2026

PFFL (ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN) and USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) are both exchange-traded funds - PFFL is a Preferred Stock/Convertible Bonds fund tracking the Solactive Preferred Stock ETF Index, while USML is a Leveraged Equities fund tracking the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 5 years, PFFL returned -5.89%/yr vs 8.11%/yr for USML. At a 0.46 correlation, their price movements are largely independent. PFFL charges 0.85%/yr vs 0.95%/yr for USML.

Performance

PFFL vs. USML - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL) and ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFFL achieves a 0.10% return, which is significantly lower than USML's 2.96% return.

PFFL

• 1D: -0.99%
• 1M: -1.06%
• YTD: 0.10%
• 6M: 0.21%
• 1Y: 8.48%
• 3Y*: 3.14%
• 5Y*: -5.89%
• 10Y*: —

USML

• 1D: -1.24%
• 1M: 3.76%
• YTD: 2.96%
• 6M: 2.63%
• 1Y: 2.80%
• 3Y*: 16.27%
• 5Y*: 8.11%
• 10Y*: —

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

PFFL vs. USML - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PFFL ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN	0.10%	2.18%	4.77%	8.65%	-39.15%	10.76%
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	2.96%	9.33%	23.97%	11.37%	-22.87%	42.12%

Correlation

The correlation between PFFL and USML is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (All Time) Calculated using the full available price history since Feb 8, 2021	0.46

The correlation between PFFL and USML shifts across timeframes, from 0.28 (1 year) to 0.46 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

PFFL vs. USML — Risk / Return Rank

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

PFFL

PFFL Risk / Return Rank: 17
PFFL Sharpe Ratio Rank: 17
PFFL Sortino Ratio Rank: 16
PFFL Omega Ratio Rank: 17
PFFL Calmar Ratio Rank: 18
PFFL Martin Ratio Rank: 17

USML

USML Risk / Return Rank: 11
USML Sharpe Ratio Rank: 11
USML Sortino Ratio Rank: 11
USML Omega Ratio Rank: 10
USML Calmar Ratio Rank: 11
USML Martin Ratio Rank: 12

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.

PFFL vs. USML - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL) and ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML). 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.

	PFFL	USML	Difference
Sharpe ratio: Return per unit of total volatility	0.50	0.17	+0.33
Sortino ratio: Return per unit of downside risk	0.81	0.35	+0.46
Omega ratio: Gain probability vs. loss probability	1.11	1.04	+0.06
Calmar ratio: Return relative to maximum drawdown	0.71	0.21	+0.50
Martin ratio: Return relative to average drawdown	1.76	0.65	+1.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFFL vs. USML - Sharpe Ratio Comparison

The current PFFL Sharpe Ratio is 0.50, which is higher than the USML Sharpe Ratio of 0.17. The chart below compares the historical Sharpe Ratios of PFFL and USML, 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

	PFFL	USML	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.50	0.17	+0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.25	0.33	-0.58
Sharpe Ratio (All Time) Calculated using the full available price history	-0.07	0.44	-0.50

Drawdowns

PFFL vs. USML - Drawdown Comparison

The maximum PFFL drawdown since its inception was -80.68%, which is greater than USML's maximum drawdown of -35.34%. Use the drawdown chart below to compare losses from any high point for PFFL and USML.

Drawdown Indicators

	PFFL	USML	Difference
Max Drawdown Largest peak-to-trough decline	-80.68%	-35.34%	-45.34%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-13.09%	+1.17%
Max Drawdown (3Y) Largest decline over 3 years	-23.75%	-19.14%	-4.61%
Max Drawdown (5Y) Largest decline over 5 years	-48.51%	-35.34%	-13.17%
Current Drawdown Current decline from peak	-38.34%	-3.69%	-34.65%
Average Drawdown Average peak-to-trough decline	-28.54%	-10.41%	-18.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.84%	4.33%	+0.51%

Volatility

PFFL vs. USML - Volatility Comparison

The current volatility for ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL) is 3.83%, while ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) has a volatility of 4.22%. This indicates that PFFL experiences smaller price fluctuations and is considered to be less risky than USML based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFFL	USML	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.83%	4.22%	-0.39%
Volatility (6M) Calculated over the trailing 6-month period	10.33%	11.44%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	16.91%	16.38%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.62%	24.47%	-0.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	55.35%	24.29%	+31.06%

PFFL vs. USML - Expense Ratio Comparison

PFFL has a 0.85% expense ratio, which is lower than USML's 0.95% expense ratio.

Dividends

PFFL vs. USML - Dividend Comparison

PFFL's dividend yield for the trailing twelve months is around 12.44%, while USML has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
PFFL ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN	12.44%	13.27%	13.76%	13.71%	13.90%	8.82%	9.75%	11.21%	2.02%
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PFFL and USML in my portfolio?

PFFL and USML have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFFL or USML?

USML has higher volatility (4.22%) compared to PFFL (3.83%). In terms of maximum drawdown, PFFL dropped -80.68% vs USML's -35.34%.

Which ETF is better, PFFL or USML?

On 5-year performance, USML leads with 8.11% vs -5.89% for PFFL. On fees, PFFL is cheaper at 0.85% per year. On volatility, PFFL has been the lower-risk option at 3.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFFL or USML?

Over the 5-year period, USML has performed better with a 8.11% return vs -5.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFFL or USML?

PFFL is cheaper with a 0.85% expense ratio, compared with 0.95% for USML.

Which ETF pays a higher dividend yield, PFFL or USML?

PFFL has the higher dividend yield at 12.44%, compared with 0.00% for USML.

What is the main difference between PFFL and USML?

PFFL is categorized as Preferred Stock/Convertible Bonds, while USML is Leveraged Equities. PFFL tracks Solactive Preferred Stock ETF Index, while USML tracks MSCI USA Minimum Volatility Index. Their fees differ too: 0.85% for PFFL and 0.95% for USML.

Which has better risk-adjusted returns?

PFFL currently has the higher Sharpe Ratio (0.50 vs 0.17), 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.