PREF vs. PFF
Compare and contrast key facts about Principal Spectrum Preferred Secs Active ETF (PREF) and iShares Preferred and Income Securities ETF (PFF).
PREF and PFF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PREF is an actively managed fund by Principal. It was launched on Jul 10, 2017. PFF is a passively managed fund by iShares that tracks the performance of the S&P U.S. Preferred Stock Index. It was launched on Mar 30, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PREF or PFF.
Key characteristics
| PREF | PFF | |
|---|---|---|
| YTD Return | 3.98% | 2.01% |
| 1Y Return | 11.36% | 6.56% |
| 3Y Return (Ann) | -0.05% | -1.49% |
| 5Y Return (Ann) | 3.34% | 2.26% |
| Sharpe Ratio | 2.25 | 0.73 |
| Daily Std Dev | 4.96% | 9.87% |
| Max Drawdown | -22.99% | -65.55% |
| Current Drawdown | -3.10% | -9.25% |
Correlation
The correlation between PREF and PFF is 0.41, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
PREF vs. PFF - Performance Comparison
In the year-to-date period, PREF achieves a 3.98% return, which is significantly higher than PFF's 2.01% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PREF vs. PFF - Expense Ratio Comparison
PREF has a 0.55% expense ratio, which is higher than PFF's 0.46% expense ratio.
Risk-Adjusted Performance
PREF vs. PFF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and iShares Preferred and Income Securities ETF (PFF). 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.
Dividends
PREF vs. PFF - Dividend Comparison
PREF's dividend yield for the trailing twelve months is around 4.60%, less than PFF's 6.42% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PREF Principal Spectrum Preferred Secs Active ETF | 4.23% | 4.67% | 4.63% | 4.07% | 4.35% | 4.67% | 5.49% | 2.35% | 0.00% | 0.00% | 0.00% | 0.00% |
PFF iShares Preferred and Income Securities ETF | 5.87% | 6.63% | 5.55% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% | 6.32% | 6.60% |
Drawdowns
PREF vs. PFF - Drawdown Comparison
The maximum PREF drawdown since its inception was -22.99%, smaller than the maximum PFF drawdown of -65.55%. Use the drawdown chart below to compare losses from any high point for PREF and PFF. For additional features, visit the drawdowns tool.
Volatility
PREF vs. PFF - Volatility Comparison
The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 1.04%, while iShares Preferred and Income Securities ETF (PFF) has a volatility of 3.13%. This indicates that PREF experiences smaller price fluctuations and is considered to be less risky than PFF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.