PFFV vs. PREF

Last updated Jun 5, 2026

PFFV (Global X Variable Rate Preferred ETF) and PREF (Principal Spectrum Preferred Secs Active ETF) are both Preferred Stock/Convertible Bonds funds. PFFV is passively managed, while PREF is actively managed. Over the past 5 years, PFFV returned 2.23%/yr vs 3.08%/yr for PREF. At a 0.39 correlation, their price movements are largely independent. PFFV charges 0.25%/yr vs 0.55%/yr for PREF.

Performance

PFFV vs. PREF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Variable Rate Preferred ETF (PFFV) and Principal Spectrum Preferred Secs Active ETF (PREF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFFV achieves a 2.83% return, which is significantly higher than PREF's 1.68% return.

PFFV

• 1D: -0.09%
• 1M: 0.32%
• YTD: 2.83%
• 6M: 2.94%
• 1Y: 4.77%
• 3Y*: 7.57%
• 5Y*: 2.23%
• 10Y*: —

PREF

• 1D: 0.03%
• 1M: 0.44%
• YTD: 1.68%
• 6M: 2.13%
• 1Y: 6.68%
• 3Y*: 9.20%
• 5Y*: 3.08%
• 10Y*: —

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

PFFV vs. PREF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PFFV Global X Variable Rate Preferred ETF	2.83%	2.08%	9.45%	10.64%	-13.81%	6.35%	13.36%
PREF Principal Spectrum Preferred Secs Active ETF	1.68%	7.64%	11.43%	7.36%	-11.80%	2.08%	9.85%

Correlation

The correlation between PFFV and PREF is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (All Time) Calculated using the full available price history since Jun 25, 2020	0.39

PFFV vs. PREF - Sectors Allocation Comparison

Sectors	PFFV	PREF
Financial Services	72.1%	100.0%
Real Estate	19.6%	-
Energy	1.6%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PFFV vs. PREF — Risk / Return Rank

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

PFFV

PFFV Risk / Return Rank: 32
PFFV Sharpe Ratio Rank: 33
PFFV Sortino Ratio Rank: 33
PFFV Omega Ratio Rank: 32
PFFV Calmar Ratio Rank: 31
PFFV Martin Ratio Rank: 30

PREF

PREF Risk / Return Rank: 66
PREF Sharpe Ratio Rank: 67
PREF Sortino Ratio Rank: 69
PREF Omega Ratio Rank: 77
PREF Calmar Ratio Rank: 48
PREF Martin Ratio Rank: 67

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.

PFFV vs. PREF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Variable Rate Preferred ETF (PFFV) and Principal Spectrum Preferred Secs Active ETF (PREF). 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.

	PFFV	PREF	Difference
Sharpe ratio: Return per unit of total volatility	1.17	2.17	-1.01
Sortino ratio: Return per unit of downside risk	1.73	3.11	-1.38
Omega ratio: Gain probability vs. loss probability	1.21	1.45	-0.24
Calmar ratio: Return relative to maximum drawdown	1.48	2.33	-0.84
Martin ratio: Return relative to average drawdown	4.15	12.14	-7.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFFV vs. PREF - Sharpe Ratio Comparison

The current PFFV Sharpe Ratio is 1.17, which is lower than the PREF Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of PFFV and PREF, 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

	PFFV	PREF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.17	2.17	-1.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	0.63	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.66	-0.11

Drawdowns

PFFV vs. PREF - Drawdown Comparison

The maximum PFFV drawdown since its inception was -18.96%, smaller than the maximum PREF drawdown of -22.99%. Use the drawdown chart below to compare losses from any high point for PFFV and PREF.

Drawdown Indicators

	PFFV	PREF	Difference
Max Drawdown Largest peak-to-trough decline	-18.96%	-22.99%	+4.03%
Max Drawdown (1Y) Largest decline over 1 year	-3.23%	-2.88%	-0.35%
Max Drawdown (3Y) Largest decline over 3 years	-6.07%	-4.39%	-1.68%
Max Drawdown (5Y) Largest decline over 5 years	-18.96%	-16.99%	-1.97%
Current Drawdown Current decline from peak	-0.40%	-0.11%	-0.29%
Average Drawdown Average peak-to-trough decline	-4.18%	-3.66%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.15%	0.55%	+0.60%

Volatility

PFFV vs. PREF - Volatility Comparison

Global X Variable Rate Preferred ETF (PFFV) has a higher volatility of 0.80% compared to Principal Spectrum Preferred Secs Active ETF (PREF) at 0.68%. This indicates that PFFV's price experiences larger fluctuations and is considered to be riskier than PREF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFFV	PREF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.80%	0.68%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	2.84%	2.50%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	4.11%	3.09%	+1.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.84%	4.87%	+3.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.68%	6.30%	+2.38%

PFFV vs. PREF - Expense Ratio Comparison

PFFV has a 0.25% expense ratio, which is lower than PREF's 0.55% expense ratio.

Dividends

PFFV vs. PREF - Dividend Comparison

PFFV's dividend yield for the trailing twelve months is around 8.12%, more than PREF's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFFV Global X Variable Rate Preferred ETF	8.12%	8.26%	7.33%	7.17%	6.60%	5.23%	2.29%	0.00%	0.00%	0.00%
PREF Principal Spectrum Preferred Secs Active ETF	5.15%	4.87%	4.65%	4.67%	4.63%	4.07%	4.35%	4.67%	5.49%	2.35%

Frequently Asked Questions

Can I hold both PFFV and PREF in my portfolio?

PFFV and PREF have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFFV or PREF?

PFFV has higher volatility (0.80%) compared to PREF (0.68%). In terms of maximum drawdown, PFFV dropped -18.96% vs PREF's -22.99%.

Which ETF is better, PFFV or PREF?

On 5-year performance, PREF leads with 3.08% vs 2.23% for PFFV. On fees, PFFV is cheaper at 0.25% per year. On volatility, PREF has been the lower-risk option at 0.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFFV or PREF?

Over the 5-year period, PREF has performed better with a 3.08% return vs 2.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFFV or PREF?

PFFV is cheaper with a 0.25% expense ratio, compared with 0.55% for PREF.

Which ETF pays a higher dividend yield, PFFV or PREF?

PFFV has the higher dividend yield at 8.12%, compared with 5.15% for PREF.

What is the main difference between PFFV and PREF?

They also come from different issuers: Global X and Principal. Their fees differ too: 0.25% for PFFV and 0.55% for PREF.

Which has better risk-adjusted returns?

PREF currently has the higher Sharpe Ratio (2.17 vs 1.17), 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.