PREF vs. PFFD

Last updated Jun 23, 2026

PREF (Principal Spectrum Preferred Secs Active ETF) and PFFD (Global X U.S. Preferred ETF) are both Preferred Stock/Convertible Bonds funds. PREF is actively managed, while PFFD is passively managed. Over the past 5 years, PREF returned 3.09%/yr vs -0.48%/yr for PFFD. At a 0.38 correlation, their price movements are largely independent. PREF charges 0.55%/yr vs 0.23%/yr for PFFD.

Performance

PREF vs. PFFD - Performance Comparison

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

Returns By Period

In the year-to-date period, PREF achieves a 1.95% return, which is significantly higher than PFFD's 1.75% return.

PREF

• 1D: -0.03%
• 1M: 0.71%
• YTD: 1.95%
• 6M: 2.02%
• 1Y: 6.17%
• 3Y*: 9.30%
• 5Y*: 3.09%
• 10Y*: —

PFFD

• 1D: -0.79%
• 1M: 0.10%
• YTD: 1.75%
• 6M: 1.05%
• 1Y: 7.25%
• 3Y*: 5.74%
• 5Y*: -0.48%
• 10Y*: —

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

PREF vs. PFFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PREF Principal Spectrum Preferred Secs Active ETF	1.95%	7.64%	11.43%	7.36%	-11.80%	2.08%	7.52%	17.32%	-5.45%	1.10%
PFFD Global X U.S. Preferred ETF	1.75%	3.22%	7.07%	6.85%	-20.20%	5.07%	8.90%	17.43%	-3.94%	0.69%

Correlation

The correlation between PREF and PFFD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (All Time) Calculated using the full available price history since Sep 13, 2017	0.38

Return for Risk

PREF vs. PFFD — Risk / Return Rank

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

PREF

PREF Risk / Return Rank: 61
PREF Sharpe Ratio Rank: 62
PREF Sortino Ratio Rank: 64
PREF Omega Ratio Rank: 72
PREF Calmar Ratio Rank: 44
PREF Martin Ratio Rank: 63

PFFD

PFFD Risk / Return Rank: 27
PFFD Sharpe Ratio Rank: 28
PFFD Sortino Ratio Rank: 27
PFFD Omega Ratio Rank: 25
PFFD Calmar Ratio Rank: 26
PFFD Martin Ratio Rank: 27

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. PFFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and Global X U.S. Preferred ETF (PFFD). 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	PFFD	Difference
Sharpe ratio: Return per unit of total volatility	1.99	0.99	+1.00
Sortino ratio: Return per unit of downside risk	2.85	1.44	+1.42
Omega ratio: Gain probability vs. loss probability	1.41	1.17	+0.24
Calmar ratio: Return relative to maximum drawdown	2.15	1.22	+0.93
Martin ratio: Return relative to average drawdown	11.17	3.57	+7.61

PREF vs. PFFD - Sharpe Ratio Comparison

The current PREF Sharpe Ratio is 1.99, which is higher than the PFFD Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of PREF and PFFD, 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. PFFD - Drawdown Comparison

The maximum PREF drawdown since its inception was -22.99%, smaller than the maximum PFFD drawdown of -30.93%. Use the drawdown chart below to compare losses from any high point for PREF and PFFD.

Drawdown Indicators

	PREF	PFFD	Difference
Max Drawdown Largest peak-to-trough decline	-22.99%	-30.93%	+7.94%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	-5.97%	+3.09%
Max Drawdown (3Y) Largest decline over 3 years	-4.39%	-10.84%	+6.45%
Max Drawdown (5Y) Largest decline over 5 years	-16.99%	-24.45%	+7.46%
Current Drawdown Current decline from peak	-0.03%	-4.19%	+4.16%
Average Drawdown Average peak-to-trough decline	-3.64%	-6.57%	+2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	2.04%	-1.49%

Volatility

PREF vs. PFFD - Volatility Comparison

The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 0.65%, while Global X U.S. Preferred ETF (PFFD) has a volatility of 1.99%. This indicates that PREF experiences smaller price fluctuations and is considered to be less risky than PFFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PREF	PFFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	1.99%	-1.34%
Volatility (6M) Calculated over the trailing 6-month period	2.51%	5.46%	-2.95%
Volatility (1Y) Calculated over the trailing 1-year period	3.12%	7.36%	-4.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	11.01%	-6.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.29%	12.73%	-6.44%

PREF vs. PFFD - Expense Ratio Comparison

PREF has a 0.55% expense ratio, which is higher than PFFD's 0.23% expense ratio.

Dividends

PREF vs. PFFD - Dividend Comparison

PREF's dividend yield for the trailing twelve months is around 5.14%, less than PFFD's 6.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFFD Global X U.S. Preferred ETF	6.40%	6.37%	6.42%	6.49%	6.63%	5.09%	5.17%	5.48%	6.21%	1.94%
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 PFFD in my portfolio?

PREF and PFFD have a correlation of 0.42, 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 PFFD?

PFFD has higher volatility (1.99%) compared to PREF (0.65%). In terms of maximum drawdown, PREF dropped -22.99% vs PFFD's -30.93%.

Which ETF is better, PREF or PFFD?

On 5-year performance, PREF leads with 3.09% vs -0.48% for PFFD. On fees, PFFD is cheaper at 0.23% per year. On volatility, PREF has been the lower-risk option at 0.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PREF or PFFD?

Over the 5-year period, PREF has performed better with a 3.09% return vs -0.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PREF or PFFD?

PFFD is cheaper with a 0.23% expense ratio, compared with 0.55% for PREF.

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

PFFD has the higher dividend yield at 6.40%, compared with 5.14% for PREF.

What is the main difference between PREF and PFFD?

They also come from different issuers: Principal and Global X. Their fees differ too: 0.55% for PREF and 0.23% for PFFD.

Which has better risk-adjusted returns?

PREF currently has the higher Sharpe Ratio (1.99 vs 0.99), 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.