PREF vs. SGOV
PREF (Principal Spectrum Preferred Secs Active ETF) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both exchange-traded funds - PREF is a Preferred Stock/Convertible Bonds fund actively managed by Principal, while SGOV is a Ultrashort Bond fund tracking the ICE 0-3 Month US Treasury Securities Index. PREF is actively managed, while SGOV is passively managed. Over the past 5 years, PREF returned 3.05%/yr vs 3.58%/yr for SGOV. At a 0.03 correlation, their price movements are largely independent. PREF charges 0.55%/yr vs 0.09%/yr for SGOV.
Performance
PREF vs. SGOV - Performance Comparison
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Returns By Period
In the year-to-date period, PREF achieves a 1.90% return, which is significantly higher than SGOV's 1.71% return.
PREF
- 1D
- -0.05%
- 1M
- 0.66%
- YTD
- 1.90%
- 6M
- 2.24%
- 1Y
- 6.11%
- 3Y*
- 9.28%
- 5Y*
- 3.05%
- 10Y*
- —
SGOV
- 1D
- 0.01%
- 1M
- 0.28%
- YTD
- 1.71%
- 6M
- 1.80%
- 1Y
- 3.92%
- 3Y*
- 4.68%
- 5Y*
- 3.58%
- 10Y*
- —
PREF vs. SGOV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
PREF Principal Spectrum Preferred Secs Active ETF | 1.90% | 7.64% | 11.43% | 7.36% | -11.80% | 2.08% | 10.66% |
SGOV iShares 0-3 Month Treasury Bond ETF | 1.71% | 4.24% | 5.27% | 5.12% | 1.58% | 0.04% | 0.04% |
Correlation
The correlation between PREF and SGOV is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since May 28, 2020 | 0.03 |
The correlation between PREF and SGOV shifts across timeframes, from -0.06 (1 year) to 0.05 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
PREF vs. SGOV — Risk / Return Rank
PREF
SGOV
PREF vs. SGOV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Spectrum Preferred Secs Active ETF (PREF) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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 | SGOV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -18.35 | ||
| Sortino ratioReturn per unit of downside risk | -270.73 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 194.05 | -192.65 |
| Calmar ratioReturn relative to maximum drawdown | 2.13 | 395.07 | -392.94 |
| Martin ratioReturn relative to average drawdown | 11.07 | 4,426.92 | -4,415.85 |
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Drawdowns
PREF vs. SGOV - Drawdown Comparison
The maximum PREF drawdown since its inception was -22.99%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for PREF and SGOV.
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Drawdown Indicators
| PREF | SGOV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.99% | -0.03% | -22.96% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -0.01% | -2.87% |
Max Drawdown (3Y)Largest decline over 3 years | -4.39% | -0.01% | -4.38% |
Max Drawdown (5Y)Largest decline over 5 years | -16.99% | -0.03% | -16.96% |
Current DrawdownCurrent decline from peak | -0.08% | 0.00% | -0.08% |
Average DrawdownAverage peak-to-trough decline | -3.64% | -0.00% | -3.64% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | 0.00% | +0.55% |
Volatility
PREF vs. SGOV - Volatility Comparison
Principal Spectrum Preferred Secs Active ETF (PREF) has a higher volatility of 0.66% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.06%. This indicates that PREF's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PREF | SGOV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.66% | 0.06% | +0.60% |
Volatility (6M)Calculated over the trailing 6-month period | 2.51% | 0.13% | +2.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.11% | 0.19% | +2.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.87% | 0.24% | +4.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.29% | 0.24% | +6.05% |
PREF vs. SGOV - Expense Ratio Comparison
PREF has a 0.55% expense ratio, which is higher than SGOV's 0.09% expense ratio.
Dividends
PREF vs. SGOV - Dividend Comparison
PREF's dividend yield for the trailing twelve months is around 5.14%, more than SGOV's 3.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
SGOV iShares 0-3 Month Treasury Bond ETF | 3.85% | 4.10% | 5.10% | 4.87% | 1.45% | 0.03% | 0.05% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PREF and SGOV have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PREF has higher volatility (0.66%) compared to SGOV (0.06%). In terms of maximum drawdown, PREF dropped -22.99% vs SGOV's -0.03%.
On 5-year performance, SGOV leads with 3.58% vs 3.05% for PREF. On fees, SGOV is cheaper at 0.09% per year. On volatility, SGOV has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SGOV has performed better with a 3.58% return vs 3.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SGOV is cheaper with a 0.09% expense ratio, compared with 0.55% for PREF.
PREF has the higher dividend yield at 5.14%, compared with 3.85% for SGOV.
PREF is categorized as Preferred Stock/Convertible Bonds, while SGOV is Ultrashort Bond. They also come from different issuers: Principal and iShares. Their fees differ too: 0.55% for PREF and 0.09% for SGOV.
SGOV currently has the higher Sharpe Ratio (20.32 vs 1.97), 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.
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