PREF vs. IG
PREF (Principal Spectrum Preferred Secs Active ETF) and IG (Principal Investment Grade Corporate Active ETF) are both exchange-traded funds - PREF is a Preferred Stock/Convertible Bonds fund actively managed by Principal, while IG is a Corporate Bonds fund actively managed by Principal. Both are actively managed. A 0.75 correlation means they provide meaningful diversification when combined. PREF charges 0.55%/yr vs 0.26%/yr for IG.
Performance
PREF vs. IG - Performance Comparison
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Returns By Period
PREF
- 1D
- -0.16%
- 1M
- 0.21%
- 6M
- 1.78%
- YTD
- 1.94%
- 1Y
- 5.40%
- 3Y*
- 8.97%
- 5Y*
- 2.92%
- 10Y*
- —
IG
- 1D
- -0.34%
- 1M
- -1.10%
- 6M
- —
- YTD
- —
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
PREF vs. IG - Yearly Performance Comparison
| 2026 (YTD) | |
|---|---|
PREF Principal Spectrum Preferred Secs Active ETF | 0.52% |
IG Principal Investment Grade Corporate Active ETF | -0.89% |
Correlation
The correlation between PREF and IG is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Apr 22, 2026 | 0.75 |
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Return for Risk
PREF vs. IG — Risk / Return Rank
PREF
IG
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
PREF vs. IG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and Principal Investment Grade Corporate Active ETF (IG). 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 | IG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | 1.35 | — | — |
| Calmar ratioReturn relative to maximum drawdown | 1.88 | — | — |
| Martin ratioReturn relative to average drawdown | 9.77 | — | — |
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Drawdowns
PREF vs. IG - Drawdown Comparison
The maximum PREF drawdown since its inception was -22.99%, which is greater than IG's maximum drawdown of -1.75%. Use the drawdown chart below to compare losses from any high point for PREF and IG.
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Drawdown Indicators
| PREF | IG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.99% | -1.75% | -21.24% |
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 DrawdownCurrent decline from peak | -0.34% | -1.62% | +1.28% |
Average DrawdownAverage peak-to-trough decline | -3.62% | -0.48% | -3.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | — | — |
Volatility
PREF vs. IG - Volatility Comparison
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Volatility by Period
| PREF | IG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.64% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.48% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 3.13% | 4.62% | -1.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.87% | 4.62% | +0.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.27% | 4.62% | +1.65% |
PREF vs. IG - Expense Ratio Comparison
PREF has a 0.55% expense ratio, which is higher than IG's 0.26% expense ratio.
Dividends
PREF vs. IG - Dividend Comparison
PREF's dividend yield for the trailing twelve months is around 5.21%, more than IG's 1.27% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
IG Principal Investment Grade Corporate Active ETF | 1.27% | 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 | 5.21% | 4.87% | 4.65% | 4.67% | 4.63% | 4.07% | 4.35% | 4.67% | 5.49% | 2.35% |
Frequently Asked Questions
PREF and IG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, IG is cheaper at 0.26% per year. The better choice depends on whether you care most about return, fees, risk, or income.
IG is cheaper with a 0.26% expense ratio, compared with 0.55% for PREF.
PREF has the higher dividend yield at 5.21%, compared with 1.27% for IG.
PREF is categorized as Preferred Stock/Convertible Bonds, while IG is Corporate Bonds. Their fees differ too: 0.55% for PREF and 0.26% for IG.
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