PFFL vs. VRP
PFFL (ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN) and VRP (Invesco Variable Rate Preferred ETF) are both Preferred Stock/Convertible Bonds funds - PFFL tracks the Solactive Preferred Stock ETF Index while VRP tracks the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. Both are passively managed. Over the past 5 years, PFFL returned -6.56%/yr vs 4.30%/yr for VRP. A 0.56 correlation means they provide meaningful diversification when combined. PFFL charges 0.85%/yr vs 0.50%/yr for VRP.
Performance
PFFL vs. VRP - Performance Comparison
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Returns By Period
In the year-to-date period, PFFL achieves a -1.72% return, which is significantly lower than VRP's 2.19% return.
PFFL
- 1D
- -1.92%
- 1M
- -1.21%
- YTD
- -1.72%
- 6M
- -2.34%
- 1Y
- 5.32%
- 3Y*
- 4.24%
- 5Y*
- -6.56%
- 10Y*
- —
VRP
- 1D
- -0.21%
- 1M
- 0.45%
- YTD
- 2.19%
- 6M
- 2.32%
- 1Y
- 6.26%
- 3Y*
- 9.75%
- 5Y*
- 4.30%
- 10Y*
- 5.18%
PFFL vs. VRP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
PFFL ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN | -1.72% | 2.18% | 4.77% | 8.65% | -39.15% | 7.52% | -15.47% | 30.21% | -10.77% |
VRP Invesco Variable Rate Preferred ETF | 2.19% | 7.34% | 11.10% | 10.35% | -9.00% | 4.20% | 5.11% | 18.84% | -7.07% |
Correlation
The correlation between PFFL and VRP is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.50 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Sep 26, 2018 | 0.56 |
The correlation between PFFL and VRP has been stable across timeframes, ranging from 0.47 to 0.56 - a consistent structural relationship.
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Return for Risk
PFFL vs. VRP — Risk / Return Rank
PFFL
VRP
PFFL vs. VRP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL) and Invesco Variable Rate Preferred ETF (VRP). 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.
| PFFL | VRP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.86 | ||
| Sortino ratioReturn per unit of downside risk | -2.59 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.46 | -0.39 |
| Calmar ratioReturn relative to maximum drawdown | 0.45 | 2.17 | -1.73 |
| Martin ratioReturn relative to average drawdown | 1.04 | 11.68 | -10.64 |
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Drawdowns
PFFL vs. VRP - Drawdown Comparison
The maximum PFFL drawdown since its inception was -80.68%, which is greater than VRP's maximum drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for PFFL and VRP.
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Drawdown Indicators
| PFFL | VRP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -80.68% | -46.04% | -34.64% |
Max Drawdown (1Y)Largest decline over 1 year | -11.92% | -2.89% | -9.03% |
Max Drawdown (3Y)Largest decline over 3 years | -23.75% | -4.26% | -19.49% |
Max Drawdown (5Y)Largest decline over 5 years | -48.51% | -13.76% | -34.75% |
Max Drawdown (10Y)Largest decline over 10 years | — | -46.04% | — |
Current DrawdownCurrent decline from peak | -39.45% | -0.21% | -39.24% |
Average DrawdownAverage peak-to-trough decline | -28.58% | -2.30% | -26.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.11% | 0.54% | +4.57% |
Volatility
PFFL vs. VRP - Volatility Comparison
ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL) has a higher volatility of 4.11% compared to Invesco Variable Rate Preferred ETF (VRP) at 0.54%. This indicates that PFFL's price experiences larger fluctuations and is considered to be riskier than VRP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PFFL | VRP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.11% | 0.54% | +3.57% |
Volatility (6M)Calculated over the trailing 6-month period | 10.67% | 2.33% | +8.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.16% | 2.90% | +14.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.66% | 6.55% | +17.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 55.18% | 14.53% | +40.65% |
PFFL vs. VRP - Expense Ratio Comparison
PFFL has a 0.85% expense ratio, which is higher than VRP's 0.50% expense ratio.
Dividends
PFFL vs. VRP - Dividend Comparison
PFFL's dividend yield for the trailing twelve months is around 13.11%, more than VRP's 6.69% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFFL ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN | 13.11% | 13.27% | 13.76% | 13.71% | 13.90% | 8.82% | 9.75% | 11.21% | 2.02% | 0.00% | 0.00% | 0.00% |
VRP Invesco Variable Rate Preferred ETF | 6.24% | 6.53% | 5.78% | 6.61% | 5.38% | 4.25% | 4.17% | 4.71% | 5.28% | 4.69% | 5.10% | 5.02% |
Frequently Asked Questions
PFFL and VRP have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PFFL has higher volatility (4.11%) compared to VRP (0.54%). In terms of maximum drawdown, PFFL dropped -80.68% vs VRP's -46.04%.
On 5-year performance, VRP leads with 4.30% vs -6.56% for PFFL. On fees, VRP is cheaper at 0.50% per year. On volatility, VRP has been the lower-risk option at 0.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VRP has performed better with a 4.30% return vs -6.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VRP is cheaper with a 0.50% expense ratio, compared with 0.85% for PFFL.
PFFL has the higher dividend yield at 13.11%, compared with 6.69% for VRP.
PFFL tracks Solactive Preferred Stock ETF Index, while VRP tracks Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. They also come from different issuers: UBS and Invesco. Their fees differ too: 0.85% for PFFL and 0.50% for VRP.
VRP currently has the higher Sharpe Ratio (2.17 vs 0.31), 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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