Is PFF a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The case for PFF is simple: low-cost, diversified exposure to ICE Exchange-Listed Preferred and Hybrid Securities Index at a 0.45% expense ratio, anchored by names like WFC, C, BAC. If that is the exposure you want and you do not already own most of it through another fund, PFF is a strong core holding. The catch is concentration in its top names and overlap with broad-market funds you may already hold. Whether it is a buy comes down to whether you want ICE Exchange-Listed Preferred and Hybrid Securities Index and at what cost. Not a recommendation; Walnut is not an investment adviser.
What are you buying with PFF?
PFF tracks the ICE Exchange-Listed Preferred and Hybrid Securities Index, a broad basket of US dollar-denominated preferred stock and hybrid debt. It charges 0.45% and yields around 5.6%, paid monthly. The key nuance versus Global X's PFFD is cost: PFFD does a similar job for 0.23%, though PFF is larger and more heavily traded.
Largest holdings (approximate as of mid-2026; verify on BlackRock (iShares)'s fund page):
| Rank | Ticker | Company | % of PFF | |
|---|---|---|---|---|
| 1 | WFC | Wells Fargo & Co (preferred) | ~2.2% | |
| 2 | C | Citigroup Capital XIII (preferred) | ~2.0% | |
| 3 | BAC | Bank of America Corp (preferred) | ~1.8% | |
| 4 | APO | Apollo Asset Management (preferred) | ~1.5% | |
| 5 | NEE | NextEra Energy (preferred) | ~1.4% | |
| 6 | JPM | JPMorgan Chase & Co (preferred) | ~1.3% | |
| 7 | MS | Morgan Stanley (preferred) | ~1.2% | |
| 8 | GS | Goldman Sachs Group (preferred) | ~1.1% | |
| 9 | USB | U.S. Bancorp (preferred) | ~1.0% | |
| 10 | AIG | American International Group (preferred) | ~0.9% |
What's the case for PFF?
PFF is the largest US preferred-stock ETF. It holds a broad basket of roughly 450 US-listed preferred and hybrid securities, heavily weighted toward big banks and financials like Wells Fargo, Citigroup, and Bank of America, and tracks the ICE Exchange-Listed Preferred and Hybrid Securities Index. It charges 0.45%, yields around 5.6%, and pays monthly. It is an income vehicle, not a growth fund. The obvious cheaper peer is Global X's PFFD at 0.23%.
In its favour: it gives you ICE Exchange-Listed Preferred and Hybrid Securities Index exposure in one ticker at a 0.45% expense ratio, which is simple to hold and cheap to own.
What should you weigh before buying PFF?
- Cost vs alternatives: 0.45% is the fee; compare it to funds tracking a similar index.
- Concentration: check how much of PFF sits in its largest holdings (WFC, C, BAC).
- Overlap: if you already own a broad-market fund, you may already hold much of this.
- Tracking scope: PFF only gives you ICE Exchange-Listed Preferred and Hybrid Securities Index; it will not capture what sits outside that index.
How do you decide if PFF is a buy?
The useful question is rarely “will PFF go up?” It is “does this exposure fit my plan, at a cost I am happy with, without doubling up on what I already own?” Walnut connects your real brokerage so you can see exactly how PFF would overlap with your current holdings, analyze it by chatting through Claude or ChatGPT, and place any trade yourself. You stay in control.
The bottom line on PFF
The bottom line: PFF is a low-cost core building block for ICE Exchange-Listed Preferred and Hybrid Securities Index exposure, not a tactical bet on a single name. If you want ICE Exchange-Listed Preferred and Hybrid Securities Index exposure and the 0.45% fee is competitive for you, it does its job well. If you already own that exposure through another fund, adding it mostly doubles a fee without adding diversification. Decide from your goal and your existing holdings, not from where the market sat last week. Walnut is not an investment adviser.
Build a portfolio around PFF with Walnut
Use PFF as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
Is PFF a good ETF to buy?
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Walnut is informational, not investment advice. Whether PFF fits depends on your goals, time horizon, and what you already hold. It tracks ICE Exchange-Listed Preferred and Hybrid Securities Index at a 0.45% expense ratio, so the questions that matter are whether you want that exposure, whether you already own it through another fund, and whether the cost is competitive for what it does.
What does PFF actually hold?
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PFF tracks ICE Exchange-Listed Preferred and Hybrid Securities Index. Its largest positions include WFC, C, BAC, APO, NEE and others (approximate, verify on BlackRock (iShares)'s fund page). The holdings are what you are really buying, not the ticker.
What is PFF's expense ratio?
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0.45% as of mid-2026. Over decades, the expense ratio is one of the few things you can control, so it is worth comparing against close alternatives that track a similar index.
Does PFF pay a dividend?
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PFF distributes a dividend with an approximate yield of ~5.6% (mid-2026). See the PFF dividend page for how distributions work. Verify the current figure with BlackRock (iShares).
What are the risks of buying PFF?
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Like any index ETF, weigh concentration (how much sits in the top holdings), overlap with funds you already own, and whether ICE Exchange-Listed Preferred and Hybrid Securities Index matches the exposure you actually want. PFF only gives you ICE Exchange-Listed Preferred and Hybrid Securities Index, not what sits outside it.
How do I decide if PFF is right for me?
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Start from your goal, then check four things: what PFF holds, its cost versus alternatives, how much it overlaps with what you already own, and whether the exposure fits your time horizon and risk tolerance. Walnut can analyze the overlap against your real holdings; you keep your broker and approve any trade.
Walnut is informational, not investment advice. Figures are approximations stamped to mid-2026; verify current data with BlackRock (iShares) or your broker. Nothing here is a recommendation to buy, sell, or hold any security.