Preferred Stock ETFs

Preferred ETFs hold hybrid coupons. They often pay monthly and sit between bonds and common stock. They are rate toys, not covered-call toys.

ETF TypesIntermediate9 min readUpdated 2026-09-08

What it is

PFF is the broad preferred benchmark. PFFA is a common active alternative. PFFD and PGX are other index/active variants on our list.

You are usually taking duration and credit risk. A higher yield than SCHD is not a free lunch.

Hypothetical: $10,000 at 6% preferred yield

Labeled hypothetical — not a live yield, AUM, or tax bracket.

  1. At a constant 6%, cash is about $600/year before tax.
  2. If long rates rise, preferred prices can fall like bonds — your 6% print does not protect mark-to-market.
  3. Compare PFF vs a bond ETF on the bond list and vs SCHD on the quality list. Different risks.

Live trailing yields

From our quote API, hourly cache. As of 2026-09-28. Not a forecast.

PFF

iShares Preferred and Income Securities ETF

5.51% TTM yield

On $10,000: about $551/year ($46/mo) if this snapshot held.

Who this is for

  • Income investors who already understand rate risk.

Who this is not for

  • Using preferreds as a substitute for an emergency fund.

What people get wrong

  • Ranking PFF next to QYLD as if both were “monthly yield.”

How to check it on Dividend Wealth

Preferred stock ETFs is the document: PFF, PFFA, PFFD, PGX.

Preferred stock ETFs

Related lessons

FAQ

What is a preferred stock ETF?

A fund that holds preferred shares — hybrid securities with a coupon, sitting between bonds and common stock. PFF is the usual broad benchmark.

Do preferred ETFs yield more than SCHD?

Often yes, because you are taking rate and credit risk, not dividend-growth equity risk. They can lose money when rates rise.

Where is the preferred list?

/lists/preferred-etfs — PFF, PFFA, PFFD, PGX and peers.

Educational only — not investment, tax, or legal advice. Dividend Wealth does not recommend 2x daily, inverse, or single-stock YieldMax products as “best income.” Yields change. Confirm filings and your own tax situation.