PREF vs. FPFD

Last updated Jun 24, 2026

PREF (Principal Spectrum Preferred Secs Active ETF) and FPFD (Fidelity Preferred Securities & Income ETF) are both Preferred Stock/Convertible Bonds funds. Both are actively managed. Over the past 5 years, PREF returned 3.05%/yr vs 1.65%/yr for FPFD. A 0.51 correlation means they provide meaningful diversification when combined. PREF charges 0.55%/yr vs 0.59%/yr for FPFD.

Performance

PREF vs. FPFD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Spectrum Preferred Secs Active ETF (PREF) and Fidelity Preferred Securities & Income ETF (FPFD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PREF achieves a 1.90% return, which is significantly higher than FPFD's 0.66% return.

PREF

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

FPFD

• 1D: -0.09%
• 1M: -0.02%
• YTD: 0.66%
• 6M: 0.74%
• 1Y: 5.33%
• 3Y*: 7.75%
• 5Y*: 1.65%
• 10Y*: —

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

PREF vs. FPFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PREF Principal Spectrum Preferred Secs Active ETF	1.90%	7.64%	11.43%	7.36%	-11.80%	0.81%
FPFD Fidelity Preferred Securities & Income ETF	0.66%	6.46%	8.50%	10.91%	-17.11%	1.84%

Correlation

The correlation between PREF and FPFD 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	0.51
Correlation (All Time) Calculated using the full available price history since Jun 17, 2021	0.51

The correlation between PREF and FPFD has been stable across timeframes, ranging from 0.46 to 0.51 - a consistent structural relationship.

Return for Risk

PREF vs. FPFD — 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

FPFD

FPFD Risk / Return Rank: 52
FPFD Sharpe Ratio Rank: 56
FPFD Sortino Ratio Rank: 60
FPFD Omega Ratio Rank: 61
FPFD Calmar Ratio Rank: 41
FPFD Martin Ratio Rank: 44

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. FPFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and Fidelity Preferred Securities & Income ETF (FPFD). 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	FPFD	Difference
Sharpe ratio: Return per unit of total volatility	1.97	1.80	+0.18
Sortino ratio: Return per unit of downside risk	2.83	2.66	+0.17
Omega ratio: Gain probability vs. loss probability	1.40	1.35	+0.06
Calmar ratio: Return relative to maximum drawdown	2.13	1.95	+0.18
Martin ratio: Return relative to average drawdown	11.07	6.84	+4.23

PREF vs. FPFD - Sharpe Ratio Comparison

The current PREF Sharpe Ratio is 1.97, which is comparable to the FPFD Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of PREF and FPFD, 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

PREF vs. FPFD - Drawdown Comparison

The maximum PREF drawdown since its inception was -22.99%, which is greater than FPFD's maximum drawdown of -20.83%. Use the drawdown chart below to compare losses from any high point for PREF and FPFD.

Drawdown Indicators

	PREF	FPFD	Difference
Max Drawdown Largest peak-to-trough decline	-22.99%	-20.83%	-2.16%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	-2.75%	-0.13%
Max Drawdown (3Y) Largest decline over 3 years	-4.39%	-4.92%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-16.99%	-20.83%	+3.84%
Current Drawdown Current decline from peak	-0.08%	-1.29%	+1.21%
Average Drawdown Average peak-to-trough decline	-3.64%	-6.75%	+3.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	0.78%	-0.23%

Volatility

PREF vs. FPFD - Volatility Comparison

The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 0.66%, while Fidelity Preferred Securities & Income ETF (FPFD) has a volatility of 0.74%. This indicates that PREF experiences smaller price fluctuations and is considered to be less risky than FPFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PREF	FPFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.66%	0.74%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.51%	2.28%	+0.23%
Volatility (1Y) Calculated over the trailing 1-year period	3.11%	2.98%	+0.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	5.31%	-0.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.29%	5.30%	+0.99%

PREF vs. FPFD - Expense Ratio Comparison

PREF has a 0.55% expense ratio, which is lower than FPFD's 0.59% expense ratio.

Dividends

PREF vs. FPFD - Dividend Comparison

PREF's dividend yield for the trailing twelve months is around 5.14%, which matches FPFD's 5.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FPFD Fidelity Preferred Securities & Income ETF	5.15%	5.04%	4.89%	5.09%	5.22%	1.59%	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 FPFD in my portfolio?

PREF and FPFD 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, PREF or FPFD?

FPFD has higher volatility (0.74%) compared to PREF (0.66%). In terms of maximum drawdown, PREF dropped -22.99% vs FPFD's -20.83%.

Which ETF is better, PREF or FPFD?

On 5-year performance, PREF leads with 3.05% vs 1.65% for FPFD. On fees, PREF is cheaper at 0.55% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PREF or FPFD?

Over the 5-year period, PREF has performed better with a 3.05% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PREF or FPFD?

PREF is cheaper with a 0.55% expense ratio, compared with 0.59% for FPFD.

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

PREF and FPFD have nearly identical dividend yields, around 5.14%.

What is the main difference between PREF and FPFD?

They also come from different issuers: Principal and Fidelity. Their fees differ too: 0.55% for PREF and 0.59% for FPFD.

Which has better risk-adjusted returns?

PREF currently has the higher Sharpe Ratio (1.97 vs 1.80), 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.