PFFD vs PRIZ

PFFDAGlobal X U.S. Preferred ETF

PRIZCZacks Preferred Income ETF

In short

PFFD Preferred stock is a corner where fund fees usually run rich. PFFD turned up in 2017 charging 0.23% for a broad basket of U.S. preferreds, and it has paid monthly ever since. Cheap, plain-vanilla exposure to an income niche.

PRIZ Most preferred ETFs pay out whatever coupons show up. PRIZ is actively managed and works backward from a declared target: quarterly income plus managed distributions aiming at roughly 8% annualized on NAV, with return of capital possible.

Stated mandate

PFFD PFFD seeks to track the performance of the ICE BofA Diversified Core U.S. Preferred Securities Index before fees and expenses. It provides broad exposure to U.S. preferred stocks.

PRIZ The Fund seeks current income. It is actively managed and normally invests at least 80% of its net assets, plus borrowings, in preferred securities.

Why people hold it

• PFFD Charges 0.23% a year, which Global X notes is less than half the average fee among competing preferred funds.globalxetfs.com
• Holds roughly 220 U.S. preferreds tracking the ICE BofA Diversified Core index. Benchmark-like exposure, not a manager's shortlist.globalxetfs.com
• Pays distributions monthly, and has done so every year since its 2017 launch.globalxetfs.com
• A multi-billion-dollar fund that trades actively, so entering and exiting is rarely the hard part.

• PRIZ At 0.45% net of a waiver through June 30, 2027, it prices level with PFF (0.45%) and PSK (0.45%), and near the category median. The gross fee is 1.07%.
• Actively managed, with at least 80% of net assets plus borrowings in preferred securities, so a manager picks the issues instead of inheriting an index list.sec.gov
• Each quarterly distribution comes with an estimate of how much is net investment income, capital gains, or return of capital, so you can see what the check is made of.sec.gov

Worth knowing

• PFFD Preferreds come mostly from banks and insurers, and the index has been concentrated in banking, so the ride tracks financial-sector health.globalxetfs.com
• These securities behave more like long bonds than stocks: interest rate moves push prices around, as the fund's risk disclosures describe.globalxetfs.com
• Monthly does not mean fixed. The payout size floats with what the portfolio collects.globalxetfs.com

• PRIZ The 8% rate is a target, not a floor: the prospectus says it can be raised or lowered without notice, and part of any payout may be a return of your own capital.sec.gov
• Thinly traded since its 2026 launch, so spreads and order size matter more here than in the category's giants.
• Preferreds are mostly bank and insurer paper, and the fund's sector tag is financials, so one industry's credit cycle drives much of the ride.

Full PFFD profile⁠

Full PRIZ profile⁠