TLT vs. PFF
TLT (iShares 20+ Year Treasury Bond ETF) and PFF (iShares Preferred and Income Securities ETF) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index. Both are passively managed. Over the past 10 years, TLT returned -1.56%/yr vs 3.30%/yr for PFF. At a 0.04 correlation, their price movements are largely independent. TLT charges 0.15%/yr vs 0.46%/yr for PFF.
Performance
TLT vs. PFF - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TLT achieves a 1.41% return, which is significantly lower than PFF's 2.93% return. Over the past 10 years, TLT has underperformed PFF with an annualized return of -1.56%, while PFF has yielded a comparatively higher 3.30% annualized return.
TLT
- 1D
- 0.49%
- 1M
- 2.85%
- YTD
- 1.41%
- 6M
- 0.96%
- 1Y
- 4.88%
- 3Y*
- -1.45%
- 5Y*
- -6.76%
- 10Y*
- -1.56%
PFF
- 1D
- 0.45%
- 1M
- 0.41%
- YTD
- 2.93%
- 6M
- 2.33%
- 1Y
- 8.86%
- 3Y*
- 7.05%
- 5Y*
- 1.45%
- 10Y*
- 3.30%
TLT vs. PFF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 1.41% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
PFF iShares Preferred and Income Securities ETF | 2.93% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
Correlation
The correlation between TLT and PFF is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.39 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2007 | 0.04 |
Over the past year, TLT and PFF have become more correlated (0.38) than their long-term average of 0.04, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TLT vs. PFF — Risk / Return Rank
TLT
PFF
TLT vs. PFF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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.
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.
| TLT | PFF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.81 | ||
| Sortino ratioReturn per unit of downside risk | -1.11 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.23 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 0.62 | 1.72 | -1.10 |
| Martin ratioReturn relative to average drawdown | 1.48 | 5.21 | -3.73 |
Loading charts...
Drawdowns
TLT vs. PFF - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum PFF drawdown of -65.55%. Use the drawdown chart below to compare losses from any high point for TLT and PFF.
Loading charts...
Drawdown Indicators
| TLT | PFF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -65.55% | +17.20% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -5.28% | -2.30% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -10.63% | -8.55% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -21.05% | -22.65% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -34.10% | -14.25% |
Current DrawdownCurrent decline from peak | -39.43% | -1.11% | -38.32% |
Average DrawdownAverage peak-to-trough decline | -13.86% | -5.75% | -8.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.16% | 1.73% | +1.43% |
Volatility
TLT vs. PFF - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) and iShares Preferred and Income Securities ETF (PFF) have volatilities of 2.18% and 2.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| TLT | PFF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.18% | 2.08% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 6.59% | 5.28% | +1.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.45% | 6.91% | +2.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.82% | 10.33% | +5.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 12.67% | +2.24% |
TLT vs. PFF - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is lower than PFF's 0.46% expense ratio.
Dividends
TLT vs. PFF - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.51%, less than PFF's 5.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 5.47% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
TLT iShares 20+ Year Treasury Bond ETF | 4.51% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
TLT and PFF have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.18%) compared to PFF (2.08%). In terms of maximum drawdown, TLT dropped -48.35% vs PFF's -65.55%.
On 10-year performance, PFF leads with 3.30% vs -1.56% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, PFF has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PFF has performed better with a 3.30% return vs -1.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.46% for PFF.
PFF has the higher dividend yield at 5.47%, compared with 4.51% for TLT.
TLT is categorized as Government Bonds, while PFF is Preferred Stock/Convertible Bonds. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index. Their fees differ too: 0.15% for TLT and 0.46% for PFF.
PFF currently has the higher Sharpe Ratio (1.31 vs 0.50), 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.
Find the right allocation for TLT and PFF
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer