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Best Preferred Stock ETFs in 2026

ETFs holding preferred shares for steady, bond-like income with higher yields than common-stock dividends.

Data updated July 2026 · 25 ETFs

ETFs listed25
Avg yield6.50%
Avg expense ratio0.60%

Who this page is for

Best for

  • Income investors who want higher, steadier yield than common-stock dividend ETFs
  • Retirees seeking a bond-like sleeve that still pays 5-10%
  • Diversifiers looking for a distinct asset class between stocks and bonds

Not a fit for

  • Investors who need capital appreciation — preferreds trade in a narrow price band
  • Anyone sensitive to interest-rate risk; preferreds fall when long rates rise
  • Those wanting credit safety — most issuers are banks and financials, concentrating sector risk

Analysis

Preferred stock ETFs occupy the middle ground between bonds and common equity. Preferred shares pay a fixed distribution that ranks ahead of common dividends, so the income is steadier and the yields — typically 5% to 10% — are well above what a broad dividend ETF delivers. That income comes with two trade-offs. First, preferreds are highly sensitive to interest rates: because their payments are fixed, prices fall when long-term rates rise, much like a long-duration bond. Second, the issuer base is heavily concentrated in banks, insurers, and other financials, so a preferred ETF carries real sector risk. Active funds like PFFA lever the portfolio to push yield higher, while passive funds like PFF and PGX offer broad, lower-cost exposure. Use preferreds as an income sleeve, not a growth engine.

Top picks

Top 3 preferred stock ETFs by assets under management.

Yield distribution

0-2%02-5%15-8%218-12%312%+0

Expense ratio distribution

0.20-0.50%110.50-0.75%90.75-1.00%21.00%+1

Income projection

Estimated annual, monthly, and weekly income based on the average yield of 6.50% across these 25 ETFs. For illustration only—actual income will vary.

InvestmentAnnual incomeMonthly incomeWeekly income
$10,000$650$54$13
$25,000$1,626$135$31
$50,000$3,251$271$63
$100,000$6,503$542$125

Issuer breakdown

Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.

Invesco3
Global X3
Cohen & Steers3
First Trust2
iShares1
VanEck1
Virtus Investment Partners1
Principal1

All 25 ETFs

Ticker Name Issuer Yield Expense ratio AUM Frequency
PFFiShares Preferred and Income Securities ETFiShares5.57%0.46%$13.5BMonthly
FPEFirst Trust Preferred Securities and Income ETFFirst Trust6.56%0.84%$6.3BMonthly
PGXInvesco Preferred ETFInvesco5.45%0.50%$3.8BMonthly
VRPInvesco Variable Rate Preferred ETFInvesco4.44%0.50%$2.9BMonthly
PFXFVanEck Preferred Securities ex Financials ETFVanEck7.34%0.41%$2.5BMonthly
PFFAVirtus InfraCap U.S. Preferred Stock ETFVirtus Investment Partners9.88%2.52%$2.4BMonthly
PFFDGlobal X U.S. Preferred ETFGlobal X6.43%0.23%$2.2BMonthly
FPEIFirst Trust Institutional Preferred Securities and Income ETFFirst Trust5.63%0.85%$1.9BMonthly
PREFPrincipal Spectrum Preferred Securities Active ETFPrincipal5.33%0.55%$1.8BMonthly
PSKSPDR® ICE Preferred Securities ETFState Street7.11%0.45%$710MMonthly
PGFInvesco Financial Preferred ETFInvesco6.56%0.56%$688MMonthly
PFLDAAM Low Duration Preferred and Income Securities ETFAAM5.50%0.46%$423MMonthly
PFFVGlobal X Variable Rate Preferred ETFGlobal X7.17%0.25%$305MMonthly
CSPFCohen & Steers Preferred and Income Opportunities Active ETFCohen & Steers6.26%0.59%$272MMonthly
PRFDPIMCO Preferred And Capital Securities Active Exchange-Traded FundPIMCO5.89%0.74%$220MMonthly
JHPIJohn Hancock Preferred Income ETFJohn Hancock6.33%0.54%$204MMonthly
NPFINuveen Preferred and Income ETFNuveen6.25%0.55%$167MMonthly
SPFFGlobal X SuperIncome Preferred ETFGlobal X6.65%0.48%$142MMonthly
PFFRVirtus InfraCap REIT Preferred ETFInfraCap8.32%0.45%$117MMonthly
GPRFGoldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETFGoldman Sachs6.39%0.45%$105MMonthly
FPFDFidelity Preferred Securities & Inc ETFFidelity Investments6.95%0.59%$83MMonthly
EPRFInnovator S&P Investment Grade Preferred ETFInnovator ETFs6.14%0.47%$71MMonthly
CSSDCohen & Steers Short Duration Preferred And Income Active ETFCohen & Steers6.14%$45MMonthly
EVPFEaton Vance Preferred Securities and Income ETFEaton Vance6.00%0.39%$35MMonthly
PTACohen & Steers Tax-Advantaged Preferred Securities and Income FundCohen & Steers8.28%Monthly

Frequently asked questions

What are the best preferred stock ETFs?

This page lists the top 25 ETFs in this category ranked by key metrics. The list includes funds from issuers like iShares, First Trust, Invesco, VanEck and more.

How often is this list updated?

The data on this page is refreshed regularly using the latest available distribution rates, expense ratios, and AUM figures. Last updated July 2026.

What is the average yield of these ETFs?

The average distribution yield across the 25 ETFs on this list is 6.50%. Individual yields range from 8.28% to 5.57%.

What is a preferred stock ETF?

It is a fund that holds preferred shares — hybrid securities that pay a fixed distribution ranking ahead of common-stock dividends. The ETF bundles hundreds of these issues so you get diversified preferred income in a single ticker.

Why are preferred stock ETFs sensitive to interest rates?

Preferred payments are fixed, so their value behaves like a long-duration bond. When long-term interest rates rise, the fixed payment becomes less attractive and preferred prices fall; when rates drop, they rise. This rate sensitivity is the main driver of preferred ETF price moves.

What's the difference between PFF, PGX, and PFFA?

PFF (iShares) and PGX (Invesco) are large, passive, index-based preferred ETFs with broad exposure and lower fees. PFFA (Virtus InfraCap) is actively managed and uses modest leverage to target a higher distribution, which raises both its yield and its risk.

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