PQDI vs. PREF

Last updated Jun 4, 2026

PQDI (Principal Spectrum Preferred and Income ETF) and PREF (Principal Spectrum Preferred Secs Active ETF) are both Preferred Stock/Convertible Bonds funds from Principal. PQDI is passively managed, while PREF is actively managed. Over the past 5 years, PQDI returned 3.23%/yr vs 3.07%/yr for PREF. A 0.55 correlation means they provide meaningful diversification when combined. PQDI charges 0.60%/yr vs 0.55%/yr for PREF.

Performance

PQDI vs. PREF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Spectrum Preferred and Income ETF (PQDI) 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, PQDI achieves a 1.19% return, which is significantly lower than PREF's 1.65% return.

PQDI

• 1D: -0.13%
• 1M: 0.33%
• YTD: 1.19%
• 6M: 1.73%
• 1Y: 7.12%
• 3Y*: 9.06%
• 5Y*: 3.23%
• 10Y*: —

PREF

• 1D: -0.13%
• 1M: 0.52%
• YTD: 1.65%
• 6M: 2.32%
• 1Y: 6.65%
• 3Y*: 9.25%
• 5Y*: 3.07%
• 10Y*: —

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

PQDI vs. PREF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PQDI Principal Spectrum Preferred and Income ETF	1.19%	8.46%	9.99%	6.24%	-9.61%	3.10%	9.81%
PREF Principal Spectrum Preferred Secs Active ETF	1.65%	7.64%	11.43%	7.36%	-11.80%	2.08%	9.41%

Correlation

The correlation between PQDI and PREF is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Jun 18, 2020	0.55

The correlation between PQDI and PREF has been stable across timeframes, ranging from 0.46 to 0.55 - a consistent structural relationship.

PQDI vs. PREF - Sectors Allocation Comparison

Sectors	PQDI	PREF
Financial Services	10.5%	100.0%
Communication Services	0.7%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PQDI vs. PREF — Risk / Return Rank

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

PQDI

PQDI Risk / Return Rank: 63
PQDI Sharpe Ratio Rank: 67
PQDI Sortino Ratio Rank: 71
PQDI Omega Ratio Rank: 80
PQDI Calmar Ratio Rank: 44
PQDI Martin Ratio Rank: 56

PREF

PREF Risk / Return Rank: 64
PREF Sharpe Ratio Rank: 64
PREF Sortino Ratio Rank: 67
PREF Omega Ratio Rank: 75
PREF Calmar Ratio Rank: 46
PREF Martin Ratio Rank: 66

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.

PQDI vs. PREF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred and Income ETF (PQDI) 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.

	PQDI	PREF	Difference
Sharpe ratio Return per unit of total volatility	2.22	2.16	+0.06
Sortino ratio Return per unit of downside risk	3.24	3.10	+0.14
Omega ratio Gain probability vs. loss probability	1.48	1.45	+0.03
Calmar ratio Return relative to maximum drawdown	2.16	2.32	-0.16
Martin ratio Return relative to average drawdown	9.67	12.09	-2.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PQDI vs. PREF - Sharpe Ratio Comparison

The current PQDI Sharpe Ratio is 2.22, which is comparable to the PREF Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of PQDI 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

	PQDI	PREF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.22	2.16	+0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.63	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	1.03	0.66	+0.37

Drawdowns

PQDI vs. PREF - Drawdown Comparison

The maximum PQDI drawdown since its inception was -17.41%, smaller than the maximum PREF drawdown of -22.99%. Use the drawdown chart below to compare losses from any high point for PQDI and PREF.

Drawdown Indicators

	PQDI	PREF	Difference
Max Drawdown Largest peak-to-trough decline	-17.41%	-22.99%	+5.58%
Max Drawdown (1Y) Largest decline over 1 year	-3.31%	-2.88%	-0.43%
Max Drawdown (3Y) Largest decline over 3 years	-3.31%	-4.39%	+1.08%
Max Drawdown (5Y) Largest decline over 5 years	-17.41%	-16.99%	-0.42%
Current Drawdown Current decline from peak	-0.63%	-0.13%	-0.50%
Average Drawdown Average peak-to-trough decline	-3.51%	-3.66%	+0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.74%	0.55%	+0.19%

Volatility

PQDI vs. PREF - Volatility Comparison

Principal Spectrum Preferred and Income ETF (PQDI) has a higher volatility of 1.07% compared to Principal Spectrum Preferred Secs Active ETF (PREF) at 0.69%. This indicates that PQDI'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

	PQDI	PREF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.07%	0.69%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	2.81%	2.51%	+0.30%
Volatility (1Y) Calculated over the trailing 1-year period	3.22%	3.09%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.69%	4.87%	-0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.55%	6.30%	-1.75%

PQDI vs. PREF - Expense Ratio Comparison

PQDI has a 0.60% expense ratio, which is higher than PREF's 0.55% expense ratio.

Dividends

PQDI vs. PREF - Dividend Comparison

PQDI's dividend yield for the trailing twelve months is around 5.46%, more than PREF's 5.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PQDI Principal Spectrum Preferred and Income ETF	5.46%	5.02%	4.93%	5.35%	5.60%	5.21%	2.69%	0.00%	0.00%	0.00%
PREF Principal Spectrum Preferred Secs Active ETF	5.16%	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 PQDI and PREF in my portfolio?

PQDI and PREF have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PQDI or PREF?

PQDI has higher volatility (1.07%) compared to PREF (0.69%). In terms of maximum drawdown, PQDI dropped -17.41% vs PREF's -22.99%.

Which ETF is better, PQDI or PREF?

On 5-year performance, PQDI leads with 3.23% vs 3.07% for PREF. On fees, PREF is cheaper at 0.55% per year. On volatility, PREF has been the lower-risk option at 0.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PQDI or PREF?

Over the 5-year period, PQDI has performed better with a 3.23% return vs 3.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PQDI or PREF?

PREF is cheaper with a 0.55% expense ratio, compared with 0.60% for PQDI.

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

PQDI has the higher dividend yield at 5.46%, compared with 5.16% for PREF.

What is the main difference between PQDI and PREF?

Their fees differ too: 0.60% for PQDI and 0.55% for PREF.

Which has better risk-adjusted returns?

PQDI currently has the higher Sharpe Ratio (2.22 vs 2.16), 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.