High-Yield Preferred Stock ETFs: Complete List & Live Data

PFF, launched by BlackRock’s iShares in 2007, was the first major preferred stock ETF and remains the largest in the category. It tracks roughly 450 U.S. dollar-denominated preferred securities, with about 64% of holdings concentrated in the financial sector. Since then, a growing number of funds have entered the space, each offering different approaches to this hybrid asset class.

Preferred stocks sit between bonds and common equity in a company’s capital structure. Holders receive fixed dividend payments before common shareholders, but typically give up voting rights. Most preferred securities carry a $25 par value, making them more accessible to individual buyers than $1,000 par corporate bonds. They tend to be perpetual or carry very long maturities, though most include a call date — usually after five years for $25 par issues — at which point the issuer can redeem them at par.

Banks dominate preferred stock issuance because regulators require them to maintain adequate Tier 1 capital. Issuing preferred stock helps banks meet those capital ratios without diluting common shareholders. Beyond banks, real estate companies, utilities, and industrial firms are also frequent issuers.

Key preferred stock types include:

• Cumulative: Missed dividends accumulate and must be paid in full before common shareholders receive anything.
• Non-cumulative: Skipped dividends are forfeited permanently, which typically means higher yields to compensate.
• Fixed-to-floating: Pay a fixed coupon for an initial period, then switch to a floating rate tied to a benchmark index.
• Callable: Can be redeemed by the issuer before maturity, usually at par value.

Among the notable ETFs in this space, PFF (iShares Preferred and Income Securities ETF) tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index. PFFD (Global X U.S. Preferred ETF), launched in 2017, stands out for its access to the institutional OTC preferred market — securities not typically available to retail buyers. FPE (First Trust Preferred Securities & Income ETF) takes an actively managed approach rather than tracking a passive index.

Preferred securities are sensitive to interest rate changes — when rates rise, preferred share prices typically fall. They also carry credit risk, as preferred ratings tend to be lower than the same issuer’s senior bonds. Income from some preferreds may qualify for lower tax rates as qualified dividend income rather than ordinary interest. Individual preferred stocks can also suffer from low liquidity, which is one reason ETFs have become a popular way to access this market.

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The table below lists high-yield preferred stock ETFs sorted by net assets and trading volume, with live pricing data for each preferred stock ETF fund.