XFLT vs. PFLD

Last updated Jun 24, 2026

XFLT (XAI Octagon Floating Rate & Alternative Income Term Trust) is a stock, while PFLD (AAM Low Duration Preferred and Income Securities ETF 144A) is Preferred Stock/Convertible Bonds fund tracking the ICE 0-5 Year Duration Exchange-Listed Preferred & Hybrid Securities Index. Over the past 5 years, XFLT returned -5.93%/yr vs 0.95%/yr for PFLD. At a 0.25 correlation, their price movements are largely independent.

Performance

XFLT vs. PFLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) and AAM Low Duration Preferred and Income Securities ETF 144A (PFLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XFLT achieves a -22.23% return, which is significantly lower than PFLD's 2.84% return.

XFLT

• 1D: -0.06%
• 1M: -7.61%
• YTD: -22.23%
• 6M: -19.20%
• 1Y: -27.04%
• 3Y*: -6.60%
• 5Y*: -5.93%
• 10Y*: —

PFLD

• 1D: 0.25%
• 1M: 0.69%
• YTD: 2.84%
• 6M: 2.85%
• 1Y: 5.44%
• 3Y*: 5.22%
• 5Y*: 0.95%
• 10Y*: —

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

XFLT vs. PFLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust	-22.23%	-15.35%	7.37%	30.40%	-20.30%	31.30%	5.13%	-2.81%
PFLD AAM Low Duration Preferred and Income Securities ETF 144A	2.84%	1.44%	5.48%	8.16%	-12.73%	4.49%	5.34%	0.86%

Correlation

The correlation between XFLT and PFLD is 0.04, 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	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (All Time) Calculated using the full available price history since Nov 20, 2019	0.25

Over the past year, the correlation between XFLT and PFLD has dropped to 0.04 - well below their long-term average of 0.25, suggesting their price drivers have been diverging.

Return for Risk

XFLT vs. PFLD — Risk / Return Rank

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

XFLT

XFLT Risk / Return Rank: 7
XFLT Sharpe Ratio Rank: 1
XFLT Sortino Ratio Rank: 3
XFLT Omega Ratio Rank: 4
XFLT Calmar Ratio Rank: 17
XFLT Martin Ratio Rank: 10

PFLD

PFLD Risk / Return Rank: 57
PFLD Sharpe Ratio Rank: 52
PFLD Sortino Ratio Rank: 62
PFLD Omega Ratio Rank: 54
PFLD Calmar Ratio Rank: 53
PFLD Martin Ratio Rank: 64

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.

XFLT vs. PFLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) and AAM Low Duration Preferred and Income Securities ETF 144A (PFLD). 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.

	XFLT	PFLD	Difference
Sharpe ratio: Return per unit of total volatility	-1.33	1.67	-3.00
Sortino ratio: Return per unit of downside risk	-1.96	2.69	-4.65
Omega ratio: Gain probability vs. loss probability	0.77	1.31	-0.54
Calmar ratio: Return relative to maximum drawdown	-0.67	2.45	-3.11
Martin ratio: Return relative to average drawdown	-1.34	10.87	-12.22

XFLT vs. PFLD - Sharpe Ratio Comparison

The current XFLT Sharpe Ratio is -1.33, which is lower than the PFLD Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of XFLT and PFLD, 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

XFLT vs. PFLD - Drawdown Comparison

The maximum XFLT drawdown since its inception was -55.43%, which is greater than PFLD's maximum drawdown of -33.20%. Use the drawdown chart below to compare losses from any high point for XFLT and PFLD.

Drawdown Indicators

	XFLT	PFLD	Difference
Max Drawdown Largest peak-to-trough decline	-55.43%	-33.20%	-22.23%
Max Drawdown (1Y) Largest decline over 1 year	-40.67%	-2.23%	-38.44%
Max Drawdown (3Y) Largest decline over 3 years	-47.04%	-6.41%	-40.63%
Max Drawdown (5Y) Largest decline over 5 years	-47.04%	-15.51%	-31.53%
Current Drawdown Current decline from peak	-38.16%	0.00%	-38.16%
Average Drawdown Average peak-to-trough decline	-14.49%	-4.14%	-10.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.18%	0.50%	+19.68%

Volatility

XFLT vs. PFLD - Volatility Comparison

XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) has a higher volatility of 3.34% compared to AAM Low Duration Preferred and Income Securities ETF 144A (PFLD) at 0.79%. This indicates that XFLT's price experiences larger fluctuations and is considered to be riskier than PFLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XFLT	PFLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.34%	0.79%	+2.55%
Volatility (6M) Calculated over the trailing 6-month period	18.26%	2.27%	+15.99%
Volatility (1Y) Calculated over the trailing 1-year period	20.48%	3.31%	+17.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.05%	7.51%	+13.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.12%	13.32%	+12.80%

Dividends

XFLT vs. PFLD - Dividend Comparison

XFLT's dividend yield for the trailing twelve months is around 21.40%, more than PFLD's 5.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFLD AAM Low Duration Preferred and Income Securities ETF 144A	5.59%	6.52%	7.09%	7.09%	5.76%	4.52%	4.79%	0.82%	0.00%	0.00%
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust	21.40%	18.23%	15.24%	13.61%	13.86%	9.82%	10.64%	10.63%	11.33%	1.47%

Frequently Asked Questions

Can I hold both XFLT and PFLD in my portfolio?

XFLT and PFLD have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XFLT or PFLD?

XFLT has higher volatility (3.34%) compared to PFLD (0.79%). In terms of maximum drawdown, XFLT dropped -55.43% vs PFLD's -33.20%.

Which has better risk-adjusted returns?

PFLD currently has the higher Sharpe Ratio (1.67 vs -1.33), 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.