PREF vs. FDV

Last updated Jun 24, 2026

PREF (Principal Spectrum Preferred Secs Active ETF) and FDV (Federated Hermes U.S. Strategic Dividend ETF) are both exchange-traded funds - PREF is a Preferred Stock/Convertible Bonds fund actively managed by Principal, while FDV is a Large Cap Value Equities fund actively managed by Federated. Both are actively managed. At a correlation of -0.16, they often move in opposite directions. PREF charges 0.55%/yr vs 0.50%/yr for FDV.

Performance

PREF vs. FDV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Spectrum Preferred Secs Active ETF (PREF) and Federated Hermes U.S. Strategic Dividend ETF (FDV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

PREF

• 1D: -0.05%
• 1M: 0.66%
• YTD: 1.90%
• 6M: 2.24%
• 1Y: 6.11%
• 3Y*: 9.28%
• 5Y*: 3.05%
• 10Y*: —

FDV

• 1D: 1.19%
• 1M: -0.18%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PREF vs. FDV - Yearly Performance Comparison

	2026 (YTD)
PREF Principal Spectrum Preferred Secs Active ETF	0.84%
FDV Federated Hermes U.S. Strategic Dividend ETF	0.36%

Correlation

The correlation between PREF and FDV is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (All Time) Calculated using the full available price history since May 22, 2026	-0.16

Return for Risk

PREF vs. FDV — Risk / Return Rank

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

PREF

PREF Risk / Return Rank: 62
PREF Sharpe Ratio Rank: 64
PREF Sortino Ratio Rank: 65
PREF Omega Ratio Rank: 73
PREF Calmar Ratio Rank: 45
PREF Martin Ratio Rank: 64

FDV

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

PREF vs. FDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and Federated Hermes U.S. Strategic Dividend ETF (FDV). 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.

	PREF	FDV	Difference
Sharpe ratio: Return per unit of total volatility	1.97	—	—
Sortino ratio: Return per unit of downside risk	2.83	—	—
Omega ratio: Gain probability vs. loss probability	1.40	—	—
Calmar ratio: Return relative to maximum drawdown	2.13	—	—
Martin ratio: Return relative to average drawdown	11.07	—	—

Drawdowns

PREF vs. FDV - Drawdown Comparison

The maximum PREF drawdown since its inception was -22.99%, which is greater than FDV's maximum drawdown of -3.33%. Use the drawdown chart below to compare losses from any high point for PREF and FDV.

Drawdown Indicators

	PREF	FDV	Difference
Max Drawdown Largest peak-to-trough decline	-22.99%	-3.33%	-19.66%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-4.39%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.99%	—	—
Current Drawdown Current decline from peak	-0.08%	-1.78%	+1.70%
Average Drawdown Average peak-to-trough decline	-3.64%	-1.13%	-2.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	—	—

Volatility

Volatility by Period

	PREF	FDV	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	—	—
Volatility (6M) Calculated over the trailing 6-month period	2.51%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	3.11%	12.45%	-9.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	12.45%	-7.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.29%	12.45%	-6.16%

PREF vs. FDV - Expense Ratio Comparison

PREF has a 0.55% expense ratio, which is higher than FDV's 0.50% expense ratio.

Dividends

PREF vs. FDV - Dividend Comparison

PREF's dividend yield for the trailing twelve months is around 5.14%, more than FDV's 0.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDV Federated Hermes U.S. Strategic Dividend ETF	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PREF Principal Spectrum Preferred Secs Active ETF	5.14%	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 PREF and FDV in my portfolio?

PREF and FDV have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PREF or FDV?

On fees, FDV is cheaper at 0.50% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PREF or FDV?

FDV is cheaper with a 0.50% expense ratio, compared with 0.55% for PREF.

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

PREF has the higher dividend yield at 5.14%, compared with 0.27% for FDV.

What is the main difference between PREF and FDV?

PREF is categorized as Preferred Stock/Convertible Bonds, while FDV is Large Cap Value Equities. They also come from different issuers: Principal and Federated. Their fees differ too: 0.55% for PREF and 0.50% for FDV.