Best Of
Best Preferred Stock ETFs in 2026
ETFs holding preferred shares for steady, bond-like income with higher yields than common-stock dividends.
Data updated August 2026 · 25 ETFs
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
The Best Preferred Stock ETFs category spans 25 funds with an average yield of 6.16% and an average expense ratio of 0.59%, and every fund shown here distributes monthly, reflecting income investors' preference for regular cash flow. iShares dominates by scale through PFF, whose $13.1B AUM dwarfs the next-largest fund in the top 10, while First Trust, Invesco, VanEck, JPMorgan, Global X, Virtus Investment Partners, and Principal round out a fairly diverse issuer base. The category includes both passive index trackers like PFFD and actively managed strategies like PREF and PFFA, showing a mix of approaches to preferred securities exposure.
- PFF holds the largest AUM among the funds shown above at $13.1B, more than double the next-largest fund, FPE, at $6.3B.
- PFFA posts the highest yield in the top 10 at 9.91%, but it also carries by far the highest expense ratio at 2.11%, well above the category average of 0.59%.
- PFFD combines the lowest expense ratio in this group at 0.23% with a yield of 6.53%, one of the stronger yield-to-cost profiles among the top 10 shown.
AI-generated analysis — AI can make mistakes. Verify important information independently. Not investment advice. AI risk disclosure
Risks specific to this category
- Duration and credit risk: rising rates mark down longer-duration NAVs, and credit-spread widening can hit lower-rated holdings hard in a single risk-off week.
- Expense drag: expense ratios in this group average 0.59% — several times what broad index funds charge — and that cost compounds directly against total return.
- Short track records: 6 of the 25 funds launched within the last three years, so their distribution history is too short to judge payout durability across a full market cycle.
- Distributions are not contractual: each payout is declared period by period, so the yields on this page can fall without notice when portfolio income, option premium, or fund policy changes.
- Methodology divergence: every fund here follows its own index rules or mandate, so two funds with similar headline yields can hold very different portfolios and diverge sharply in a drawdown — category membership is not interchangeability.
See this list inside your portfolio
A ranked list is a starting point. Dividend Vision turns it into a plan — forecasting the income your holdings actually generate and putting each fund's yield next to its total return and risk.
- Income forecasting — know what your holdings pay monthly, quarterly, and yearly
- Yield vs. total return — weigh each distribution against price performance, not the headline rate
- Screen & compare — line up any income ETFs side by side on yield, cost, and strategy
- Portfolio risk — see income concentration, issuer overlap, and volatility across your holdings
- AI ETF comparison — ask plain-language questions to compare yield, risk, and income potential
7 days of Pro included · no credit card · free plan afterward
Top picks
Top 3 preferred stock ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated income if the current average distribution rate of 6.16% held for a full year with share prices unchanged. Distribution rate is not total return—a fund can pay a large distribution while its share price falls—so treat these as an upper-bound illustration, not a forecast.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $616 | $51 | $12 |
| $25,000 | $1,540 | $128 | $30 |
| $50,000 | $3,080 | $257 | $59 |
| $100,000 | $6,160 | $513 | $118 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
How this list is built
"Best" here means the selection rule below, applied to our own data — not an opinion poll and not a prediction:
- Universe: every security in our database matching this category — 27 qualified as of August 2026.
- Exclusions: liquidated, delisted and renamed funds drop out automatically; a renamed fund's successor appears in its place.
- Ordering: assets under management, largest first.
- Cap: the top 25 are shown; 2 further matching funds are not listed here. Use the screener for the complete set.
- Independence: no placement on this page is paid, sponsored, or influenced by a fund issuer.
All 25 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| PFF | iShares Preferred and Income Securities ETF | iShares | 5.61% | 0.45% | $13.1B | Monthly |
| FPE | First Trust Preferred Securities and Income ETF | First Trust | 6.03% | 0.83% | $6.3B | Monthly |
| PGX | Invesco Preferred ETF | Invesco | 6.59% | 0.50% | $3.8B | Monthly |
| VRP | Invesco Variable Rate Preferred ETF | Invesco | 4.44% | 0.50% | $3.0B | Monthly |
| PFFA | Virtus InfraCap U.S. Preferred Stock ETF | Virtus Investment Partners | 9.91% | 2.11% | $2.5B | Monthly |
| PFXF | VanEck Preferred Securities ex Financials ETF | VanEck | 5.88% | 0.40% | $2.4B | Monthly |
| JPRF | JPMorgan Preferred and Income Securities ETF | JPMorgan | 5.50% | 0.55% | $2.2B | Monthly |
| PFFD | Global X U.S. Preferred ETF | Global X | 6.53% | 0.23% | $2.1B | Monthly |
| FPEI | First Trust Institutional Preferred Securities and Income ETF | First Trust | 6.13% | 0.85% | $2.0B | Monthly |
| PREF | Principal Spectrum Preferred Securities Active ETF | Principal | 5.59% | 0.55% | $1.9B | Monthly |
| PSK | SPDR® ICE Preferred Securities ETF | State Street | 7.30% | 0.45% | $674M | Monthly |
| PGF | Invesco Financial Preferred ETF | Invesco | 7.32% | 0.55% | $659M | Monthly |
| PFLD | AAM Low Duration Preferred and Income Securities ETF | AAM | 5.52% | 0.45% | $405M | Monthly |
| PFFV | Global X Variable Rate Preferred ETF | Global X | 7.16% | 0.25% | $315M | Monthly |
| CSPF | Cohen & Steers Preferred and Income Opportunities Active ETF | Cohen & Steers | 5.54% | 0.59% | $315M | Monthly |
| PRFD | PIMCO Preferred And Capital Securities Active Exchange-Traded Fund | PIMCO | 5.94% | 0.73% | $238M | Monthly |
| JHPI | John Hancock Preferred Income ETF | John Hancock | 7.66% | 0.54% | $218M | Monthly |
| NPFI | Nuveen Preferred and Income ETF | Nuveen | 6.25% | 0.56% | $175M | Monthly |
| GPRF | Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF | Goldman Sachs | 5.13% | 0.45% | $146M | Monthly |
| SPFF | Global X SuperIncome Preferred ETF | Global X | 6.57% | 0.48% | $143M | Monthly |
| PFFR | Virtus InfraCap REIT Preferred ETF | InfraCap | 8.47% | 0.45% | $120M | Monthly |
| FPFD | Fidelity Preferred Securities & Inc ETF | Fidelity Investments | 4.64% | 0.59% | $81M | Monthly |
| QTPI | North Square RCIM Tax-Advantaged Preferred and Income Securities ETF | North Square | 2.50% | 0.60% | $80M | Monthly |
| EPRF | Innovator S&P Investment Grade Preferred ETF | Innovator ETFs | 6.16% | 0.47% | $67M | Monthly |
| CSSD | Cohen & Steers Short Duration Preferred And Income Active ETF | Cohen & Steers | 5.63% | — | $61M | 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, Virtus Investment Partners 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 August 2026.
What is the average yield of these ETFs?
The average distribution yield across the 25 ETFs on this list is 6.16%. Individual yields range from 2.50% to 9.91%.
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.
Looking for the complete list?
This page is our editorial shortlist, selected and ordered by the rule above. For every fund we track in this category, with live filtering, see the full preferred stock etfs list.
Explore more
Learn the method
The metrics and risks behind this list, explained in the Academy.
From the blog
Put this list to work in your portfolio
Import or build a portfolio to see income forecasts, upcoming distributions, income concentration, and risk across everything you own — and where a fund's yield and total return diverge.
7 days of Pro included · no credit card · free plan afterward