PFO vs. FLC

Last updated Jun 23, 2026

PFO (Flaherty & Crumrine Preferred and Income Opportunity Fund) and FLC (Flaherty & Crumrine Total Return Fund Inc) are both mutual funds - PFO is a Preferred Stock/Convertible Bonds fund actively managed by Flaherty & Crumrine, while FLC is a Financials Equities fund actively managed by Flaherty & Crumrine. Both are actively managed. Over the past 10 years, PFO returned 4.40%/yr vs 4.61%/yr for FLC. At a 0.42 correlation, their price movements are largely independent. PFO charges 1.40%/yr vs 1.64%/yr for FLC.

Performance

PFO vs. FLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Flaherty & Crumrine Preferred and Income Opportunity Fund (PFO) and Flaherty & Crumrine Total Return Fund Inc (FLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFO achieves a 0.15% return, which is significantly higher than FLC's -1.76% return. Both investments have delivered pretty close results over the past 10 years, with PFO having a 4.40% annualized return and FLC not far ahead at 4.61%.

PFO

• 1D: -0.33%
• 1M: 1.32%
• YTD: 0.15%
• 6M: 1.16%
• 1Y: 7.96%
• 3Y*: 13.05%
• 5Y*: -0.20%
• 10Y*: 4.40%

FLC

• 1D: -0.54%
• 1M: -0.77%
• YTD: -1.76%
• 6M: -1.32%
• 1Y: 6.69%
• 3Y*: 12.62%
• 5Y*: -0.36%
• 10Y*: 4.61%

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

PFO vs. FLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFO Flaherty & Crumrine Preferred and Income Opportunity Fund	0.15%	12.47%	21.42%	-0.59%	-27.25%	3.57%	14.06%	24.93%	-4.20%	13.98%
FLC Flaherty & Crumrine Total Return Fund Inc	-1.76%	12.38%	23.05%	-0.83%	-25.11%	2.82%	14.12%	38.65%	-14.14%	17.00%

Correlation

The correlation between PFO and FLC is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Oct 9, 2003	0.42

The correlation between PFO and FLC shifts across timeframes, from 0.42 (all time) to 0.65 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PFO vs. FLC — Risk / Return Rank

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

PFO

PFO Risk / Return Rank: 14
PFO Sharpe Ratio Rank: 17
PFO Sortino Ratio Rank: 15
PFO Omega Ratio Rank: 17
PFO Calmar Ratio Rank: 12
PFO Martin Ratio Rank: 11

FLC

FLC Risk / Return Rank: 11
FLC Sharpe Ratio Rank: 13
FLC Sortino Ratio Rank: 11
FLC Omega Ratio Rank: 13
FLC Calmar Ratio Rank: 9
FLC Martin Ratio Rank: 9

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.

PFO vs. FLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Flaherty & Crumrine Preferred and Income Opportunity Fund (PFO) and Flaherty & Crumrine Total Return Fund Inc (FLC). 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.

	PFO	FLC	Difference
Sharpe ratio: Return per unit of total volatility	1.09	0.93	+0.15
Sortino ratio: Return per unit of downside risk	1.50	1.29	+0.20
Omega ratio: Gain probability vs. loss probability	1.20	1.17	+0.03
Calmar ratio: Return relative to maximum drawdown	1.07	0.81	+0.26
Martin ratio: Return relative to average drawdown	3.03	2.50	+0.53

PFO vs. FLC - Sharpe Ratio Comparison

The current PFO Sharpe Ratio is 1.09, which is comparable to the FLC Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of PFO and FLC, 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

PFO vs. FLC - Drawdown Comparison

The maximum PFO drawdown since its inception was -77.36%, roughly equal to the maximum FLC drawdown of -76.79%. Use the drawdown chart below to compare losses from any high point for PFO and FLC.

Drawdown Indicators

	PFO	FLC	Difference
Max Drawdown Largest peak-to-trough decline	-77.36%	-76.79%	-0.57%
Max Drawdown (1Y) Largest decline over 1 year	-7.47%	-8.34%	+0.87%
Max Drawdown (3Y) Largest decline over 3 years	-12.22%	-11.87%	-0.35%
Max Drawdown (5Y) Largest decline over 5 years	-40.14%	-40.14%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-48.97%	-55.27%	+6.30%
Current Drawdown Current decline from peak	-4.54%	-5.16%	+0.62%
Average Drawdown Average peak-to-trough decline	-12.49%	-10.85%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.68%	-0.05%

Volatility

PFO vs. FLC - Volatility Comparison

The current volatility for Flaherty & Crumrine Preferred and Income Opportunity Fund (PFO) is 1.55%, while Flaherty & Crumrine Total Return Fund Inc (FLC) has a volatility of 1.76%. This indicates that PFO experiences smaller price fluctuations and is considered to be less risky than FLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFO	FLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.55%	1.76%	-0.21%
Volatility (6M) Calculated over the trailing 6-month period	5.08%	6.13%	-1.05%
Volatility (1Y) Calculated over the trailing 1-year period	7.36%	7.21%	+0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.88%	14.07%	+0.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.83%	22.04%	-0.21%

PFO vs. FLC - Expense Ratio Comparison

PFO has a 1.40% expense ratio, which is lower than FLC's 1.64% expense ratio.

Dividends

PFO vs. FLC - Dividend Comparison

PFO's dividend yield for the trailing twelve months is around 7.26%, less than FLC's 7.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLC Flaherty & Crumrine Total Return Fund Inc	7.44%	6.81%	6.62%	7.38%	8.95%	6.86%	6.27%	6.31%	8.34%	7.22%	8.20%	8.51%
PFO Flaherty & Crumrine Preferred and Income Opportunity Fund	7.26%	6.84%	6.75%	7.18%	8.73%	6.49%	6.10%	6.31%	7.55%	7.25%	8.03%	8.21%

Frequently Asked Questions

Can I hold both PFO and FLC in my portfolio?

PFO and FLC have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFO or FLC?

FLC has higher volatility (1.76%) compared to PFO (1.55%). In terms of maximum drawdown, PFO dropped -77.36% vs FLC's -76.79%.

Which has better risk-adjusted returns?

PFO currently has the higher Sharpe Ratio (1.09 vs 0.93), 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.