HBRD vs PFFV

HBRDBInvesco U.S. Hybrid Bond ETF

PFFVBGlobal X Variable Rate Preferred ETF

In short

HBRD Most preferred and hybrid funds are, underneath, a bet on banks. HBRD's index throws the banks out and tracks dollar hybrid bonds from everybody else, for 0.40% a year.

PFFV Most preferred funds hand you a fixed coupon and a lot of rate sensitivity. PFFV screens for variable-rate preferreds only, so coupons reset off short-term benchmarks instead of standing still, at 0.25% a year with monthly payouts.

Stated mandate

HBRD The Fund seeks to track, before fees and expenses, the investment results of the ICE USD Developed Markets Corporate Ex-Banks Hybrid Bond 4.65% Constrained Index.

PFFV The fund seeks to provide investment results generally corresponding to the price and yield performance of the ICE U.S. Variable Rate Preferred Securities Index before fees and expenses.

Why people hold it

• HBRD The index screens banks out entirely, tracking USD hybrid bonds from other developed-market corporates. That is a rare filter in the preferred and hybrid category.invesco.com
• At 0.40%, the fee sits below the median for preferred and hybrid ETFs and undercuts several larger, older names in the group.
• Roughly 180 bonds, with the index constrained at 4.65% per issuer, so no single borrower dominates the portfolio.
• Plain plumbing: a passive index tracker in a standard 1940 Act ETF wrapper from Invesco, paying income quarterly.

• PFFV Costs 0.25% a year, about half the typical preferred ETF fee and a fraction of what an actively run peer like FPE charges (0.83%).
• The whole point: an index of variable-rate preferreds, whose coupons reset off short-term benchmarks rather than locking in for the life of the security.
• Passive and plain-vanilla. Roughly 60 US preferred issues picked by published index rules, with income paid out monthly.
• Stacks up as one of the stronger builds in a crowded preferred-ETF field, mostly on cost and a clean, rules-based mandate.

Worth knowing

• HBRD It launched in 2026, so there is no long record yet of how closely it tracks its index or how it behaves through a credit selloff.
• Still a small fund that trades thinly, which typically means wider bid-ask spreads than the category's household names.
• Income lands quarterly, not monthly, which matters if you plan cash flow around payout dates.

• PFFV Preferred issuance skews to banks and insurers, so this is concentrated financials credit in bond clothing, spread across only about 60 positions.
• Resets cut both ways. The same floating mechanism that lifts coupons when short-term rates climb also drags them down when rates fall.
• Moderately traded and mid-sized rather than a heavyweight, so bid-ask spreads matter more here than in the largest preferred funds.

Full HBRD profile⁠

Full PFFV profile⁠