PREF vs. PGF

Last updated Jun 4, 2026

PREF (Principal Spectrum Preferred Secs Active ETF) and PGF (Invesco Financial Preferred ETF) are both Preferred Stock/Convertible Bonds funds. PREF is actively managed, while PGF is passively managed. Over the past 5 years, PREF returned 3.07%/yr vs -0.81%/yr for PGF. At a 0.36 correlation, their price movements are largely independent. PREF charges 0.55%/yr vs 0.62%/yr for PGF.

Performance

PREF vs. PGF - Performance Comparison

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

Returns By Period

In the year-to-date period, PREF achieves a 1.65% return, which is significantly higher than PGF's -0.31% return.

PREF

• 1D: -0.13%
• 1M: 0.52%
• YTD: 1.65%
• 6M: 2.32%
• 1Y: 6.65%
• 3Y*: 9.25%
• 5Y*: 3.07%
• 10Y*: —

PGF

• 1D: -0.29%
• 1M: -1.27%
• YTD: -0.31%
• 6M: 0.05%
• 1Y: 4.63%
• 3Y*: 3.91%
• 5Y*: -0.81%
• 10Y*: 2.29%

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

PREF vs. PGF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PREF Principal Spectrum Preferred Secs Active ETF	1.65%	7.64%	11.43%	7.36%	-11.80%	2.08%	7.52%	17.32%	-5.45%	2.05%
PGF Invesco Financial Preferred ETF	-0.31%	3.40%	6.01%	7.73%	-19.22%	2.65%	7.23%	14.55%	-2.82%	1.19%

Correlation

The correlation between PREF and PGF is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (All Time) Calculated using the full available price history since Jul 27, 2017	0.36

PREF vs. PGF - Sectors Allocation Comparison

Sectors	PREF	PGF
Financial Services	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

PREF vs. PGF — Risk / Return Rank

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

PREF

PREF Risk / Return Rank: 64
PREF Sharpe Ratio Rank: 64
PREF Sortino Ratio Rank: 67
PREF Omega Ratio Rank: 75
PREF Calmar Ratio Rank: 46
PREF Martin Ratio Rank: 66

PGF

PGF Risk / Return Rank: 20
PGF Sharpe Ratio Rank: 21
PGF Sortino Ratio Rank: 21
PGF Omega Ratio Rank: 19
PGF Calmar Ratio Rank: 22
PGF Martin Ratio Rank: 19

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. PGF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and Invesco Financial Preferred ETF (PGF). 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.

	PREF	PGF	Difference
Sharpe ratio: Return per unit of total volatility	2.16	0.74	+1.42
Sortino ratio: Return per unit of downside risk	3.10	1.12	+1.98
Omega ratio: Gain probability vs. loss probability	1.45	1.13	+0.32
Calmar ratio: Return relative to maximum drawdown	2.32	0.99	+1.32
Martin ratio: Return relative to average drawdown	12.09	2.11	+9.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PREF vs. PGF - Sharpe Ratio Comparison

The current PREF Sharpe Ratio is 2.16, which is higher than the PGF Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of PREF and PGF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PREF	PGF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.16	0.74	+1.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	-0.07	+0.71
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.19	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.15	+0.51

Drawdowns

PREF vs. PGF - Drawdown Comparison

The maximum PREF drawdown since its inception was -22.99%, smaller than the maximum PGF drawdown of -75.69%. Use the drawdown chart below to compare losses from any high point for PREF and PGF.

Drawdown Indicators

	PREF	PGF	Difference
Max Drawdown Largest peak-to-trough decline	-22.99%	-75.69%	+52.70%
Max Drawdown (1Y) Largest decline over 1 year	-2.88%	-4.69%	+1.81%
Max Drawdown (3Y) Largest decline over 3 years	-4.39%	-10.87%	+6.48%
Max Drawdown (5Y) Largest decline over 5 years	-16.99%	-23.41%	+6.42%
Max Drawdown (10Y) Largest decline over 10 years	—	-28.92%	—
Current Drawdown Current decline from peak	-0.13%	-5.38%	+5.25%
Average Drawdown Average peak-to-trough decline	-3.66%	-7.01%	+3.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.55%	2.20%	-1.65%

Volatility

PREF vs. PGF - Volatility Comparison

The current volatility for Principal Spectrum Preferred Secs Active ETF (PREF) is 0.69%, while Invesco Financial Preferred ETF (PGF) has a volatility of 1.48%. This indicates that PREF experiences smaller price fluctuations and is considered to be less risky than PGF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PREF	PGF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.69%	1.48%	-0.79%
Volatility (6M) Calculated over the trailing 6-month period	2.51%	4.06%	-1.55%
Volatility (1Y) Calculated over the trailing 1-year period	3.09%	6.28%	-3.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.87%	11.36%	-6.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.30%	12.00%	-5.70%

PREF vs. PGF - Expense Ratio Comparison

PREF has a 0.55% expense ratio, which is lower than PGF's 0.62% expense ratio.

Dividends

PREF vs. PGF - Dividend Comparison

PREF's dividend yield for the trailing twelve months is around 5.16%, less than PGF's 6.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PGF Invesco Financial Preferred ETF	6.33%	6.30%	6.24%	6.15%	5.95%	4.68%	4.91%	5.14%	5.73%	5.32%	5.92%	5.68%
PREF Principal Spectrum Preferred Secs Active ETF	5.16%	4.87%	4.65%	4.67%	4.63%	4.07%	4.35%	4.67%	5.49%	2.35%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PREF and PGF in my portfolio?

PREF and PGF have a correlation of 0.46, 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 PGF?

PGF has higher volatility (1.48%) compared to PREF (0.69%). In terms of maximum drawdown, PREF dropped -22.99% vs PGF's -75.69%.

Which ETF is better, PREF or PGF?

On 5-year performance, PREF leads with 3.07% vs -0.81% for PGF. On fees, PREF is cheaper at 0.55% per year. On volatility, PREF has been the lower-risk option at 0.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PREF or PGF?

Over the 5-year period, PREF has performed better with a 3.07% return vs -0.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PREF or PGF?

PREF is cheaper with a 0.55% expense ratio, compared with 0.62% for PGF.

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

PGF has the higher dividend yield at 6.33%, compared with 5.16% for PREF.

What is the main difference between PREF and PGF?

They also come from different issuers: Principal and Invesco. Their fees differ too: 0.55% for PREF and 0.62% for PGF.

Which has better risk-adjusted returns?

PREF currently has the higher Sharpe Ratio (2.16 vs 0.74), 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.