PFLD vs. VRP

Last updated Jun 4, 2026

PFLD (AAM Low Duration Preferred and Income Securities ETF 144A) and VRP (Invesco Variable Rate Preferred ETF) are both Preferred Stock/Convertible Bonds funds - PFLD tracks the ICE 0-5 Year Duration Exchange-Listed Preferred & Hybrid Securities 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, PFLD returned 1.04%/yr vs 4.38%/yr for VRP. A 0.55 correlation means they provide meaningful diversification when combined. PFLD charges 0.45%/yr vs 0.50%/yr for VRP.

Performance

PFLD vs. VRP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAM Low Duration Preferred and Income Securities ETF 144A (PFLD) and Invesco Variable Rate Preferred ETF (VRP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFLD achieves a 2.69% return, which is significantly higher than VRP's 2.11% return.

PFLD

• 1D: 0.05%
• 1M: 0.74%
• YTD: 2.69%
• 6M: 2.90%
• 1Y: 6.25%
• 3Y*: 4.93%
• 5Y*: 1.04%
• 10Y*: —

VRP

• 1D: -0.12%
• 1M: 0.66%
• YTD: 2.11%
• 6M: 2.32%
• 1Y: 6.96%
• 3Y*: 9.76%
• 5Y*: 4.38%
• 10Y*: 5.23%

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

PFLD vs. VRP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PFLD AAM Low Duration Preferred and Income Securities ETF 144A	2.69%	1.44%	5.48%	8.16%	-12.73%	4.49%	5.34%	1.04%
VRP Invesco Variable Rate Preferred ETF	2.11%	7.34%	11.10%	10.35%	-9.00%	4.20%	5.11%	1.00%

Correlation

The correlation between PFLD and VRP is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (All Time) Calculated using the full available price history since Nov 21, 2019	0.55

The correlation between PFLD and VRP shifts across timeframes, from 0.36 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

PFLD vs. VRP - Sectors Allocation Comparison

Sectors	PFLD	VRP
Utilities	100.0%	17.0%
Basic Materials	-	0.2%
Communication Services	-	4.5%
Consumer Cyclical	-	0.7%
Consumer Defensive	-	0.3%
Energy	-	7.5%
Financial Services	-	41.3%
Healthcare	-	1.7%
Industrials	-	1.4%
Real Estate	-	2.8%
Technology	-	-

Return for Risk

PFLD vs. VRP — Risk / Return Rank

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

PFLD

PFLD Risk / Return Rank: 60
PFLD Sharpe Ratio Rank: 54
PFLD Sortino Ratio Rank: 65
PFLD Omega Ratio Rank: 57
PFLD Calmar Ratio Rank: 57
PFLD Martin Ratio Rank: 68

VRP

VRP Risk / Return Rank: 71
VRP Sharpe Ratio Rank: 73
VRP Sortino Ratio Rank: 77
VRP Omega Ratio Rank: 85
VRP Calmar Ratio Rank: 48
VRP Martin Ratio Rank: 70

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.

PFLD vs. VRP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAM Low Duration Preferred and Income Securities ETF 144A (PFLD) 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.

	PFLD	VRP	Difference
Sharpe ratio: Return per unit of total volatility	1.85	2.42	-0.58
Sortino ratio: Return per unit of downside risk	3.01	3.51	-0.50
Omega ratio: Gain probability vs. loss probability	1.35	1.53	-0.18
Calmar ratio: Return relative to maximum drawdown	2.81	2.42	+0.39
Martin ratio: Return relative to average drawdown	12.46	13.02	-0.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFLD vs. VRP - Sharpe Ratio Comparison

The current PFLD Sharpe Ratio is 1.85, which is comparable to the VRP Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of PFLD and VRP, 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

	PFLD	VRP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	2.42	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.14	0.67	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.36	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.38	-0.22

Drawdowns

PFLD vs. VRP - Drawdown Comparison

The maximum PFLD drawdown since its inception was -33.20%, smaller than the maximum VRP drawdown of -46.04%. Use the drawdown chart below to compare losses from any high point for PFLD and VRP.

Drawdown Indicators

	PFLD	VRP	Difference
Max Drawdown Largest peak-to-trough decline	-33.20%	-46.04%	+12.84%
Max Drawdown (1Y) Largest decline over 1 year	-2.23%	-2.89%	+0.66%
Max Drawdown (3Y) Largest decline over 3 years	-6.41%	-4.26%	-2.15%
Max Drawdown (5Y) Largest decline over 5 years	-15.51%	-13.76%	-1.75%
Max Drawdown (10Y) Largest decline over 10 years	—	-46.04%	—
Current Drawdown Current decline from peak	0.00%	-0.12%	+0.12%
Average Drawdown Average peak-to-trough decline	-4.17%	-2.31%	-1.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.50%	0.54%	-0.04%

Volatility

PFLD vs. VRP - Volatility Comparison

AAM Low Duration Preferred and Income Securities ETF 144A (PFLD) has a higher volatility of 0.84% compared to Invesco Variable Rate Preferred ETF (VRP) at 0.66%. This indicates that PFLD'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.

Volatility by Period

	PFLD	VRP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.84%	0.66%	+0.18%
Volatility (6M) Calculated over the trailing 6-month period	2.26%	2.33%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	3.39%	2.88%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.50%	6.55%	+0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.38%	14.53%	-1.15%

PFLD vs. VRP - Expense Ratio Comparison

PFLD has a 0.45% expense ratio, which is lower than VRP's 0.50% expense ratio.

Dividends

PFLD vs. VRP - Dividend Comparison

PFLD's dividend yield for the trailing twelve months is around 5.60%, less than VRP's 6.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFLD AAM Low Duration Preferred and Income Securities ETF 144A	5.60%	6.52%	7.09%	7.09%	5.76%	4.52%	4.79%	0.82%	0.00%	0.00%	0.00%	0.00%
VRP Invesco Variable Rate Preferred ETF	6.30%	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

Can I hold both PFLD and VRP in my portfolio?

PFLD and VRP have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFLD or VRP?

PFLD has higher volatility (0.84%) compared to VRP (0.66%). In terms of maximum drawdown, PFLD dropped -33.20% vs VRP's -46.04%.

Which ETF is better, PFLD or VRP?

On 5-year performance, VRP leads with 4.38% vs 1.04% for PFLD. On fees, PFLD is cheaper at 0.45% per year. On volatility, VRP has been the lower-risk option at 0.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PFLD or VRP?

Over the 5-year period, VRP has performed better with a 4.38% return vs 1.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PFLD or VRP?

PFLD is cheaper with a 0.45% expense ratio, compared with 0.50% for VRP.

Which ETF pays a higher dividend yield, PFLD or VRP?

VRP has the higher dividend yield at 6.30%, compared with 5.60% for PFLD.

What is the main difference between PFLD and VRP?

PFLD tracks ICE 0-5 Year Duration Exchange-Listed Preferred & Hybrid Securities Index, while VRP tracks Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index. They also come from different issuers: Advisors Asset Management and Invesco. Their fees differ too: 0.45% for PFLD and 0.50% for VRP.

Which has better risk-adjusted returns?

VRP currently has the higher Sharpe Ratio (2.42 vs 1.85), 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.