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PREF vs PFF

Principal Spectrum Preferred Securities Active ETF vs iShares Preferred and Income Securities ETF

PREF

Principal Spectrum Preferred Securities Active ETF

Annual cost

0.55%

Fund size

$1.5B

PFF

iShares Preferred and Income Securities ETF

Annual cost

0.45%

Fund size

$13.9B

Key differences

  • PFF costs 0.10% less per year.
  • PFF is significantly larger than PREF — larger funds tend to be more liquid and less likely to close.
  • PREF covers global markets; PFF covers north america.
  • PREF follows a active selection strategy; PFF uses index tracking.
  • Over the last 3 years, PREF has delivered higher annualized returns.
  • PFF has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

PREFPFF
Annual cost (TER)0.55%0.45%
Fund size (AUM)$1.5B$13.9B
Since20172007
Dividend yield5.03%5.65%
Asset classfixed incomefixed income
Regionglobalnorth america
Strategyactive selectionindex tracking
CAGR 1Y+7.0%+10.7%
CAGR 3Y+9.8%+8.0%
CAGR 5Y+3.2%+1.9%
Sharpe 3Y1.630.54
Volatility 1Y3.08%6.72%
Max drawdown-22.99%-34.11%

Similar to PREF and PFF