Is PFFD a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The case for PFFD is simple: low-cost, diversified exposure to ICE BofA Diversified Core U.S. Preferred Securities Index at a 0.23% expense ratio, anchored by names like WFC, BAC, C. If that is the exposure you want and you do not already own most of it through another fund, PFFD 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 BofA Diversified Core U.S. Preferred Securities Index and at what cost. Not a recommendation; Walnut is not an investment adviser.
What are you buying with PFFD?
PFFD tracks the ICE BofA Diversified Core U.S. Preferred Securities Index, a broad basket of US-listed preferred stock concentrated in banks and financials. It charges 0.23% and yields around 6.3%, paid monthly. The key nuance versus iShares' PFF is cost: PFFD does a very similar job for roughly half the fee, though PFF is far larger and more liquid.
Largest holdings (approximate as of mid-2026; verify on Global X (Mirae Asset)'s fund page):
| Rank | Ticker | Company | % of PFFD | |
|---|---|---|---|---|
| 1 | WFC | Wells Fargo & Co (preferred) | ~1.9% | |
| 2 | BAC | Bank of America Corp (preferred) | ~1.7% | |
| 3 | C | Citigroup Inc (preferred) | ~1.6% | |
| 4 | JPM | JPMorgan Chase & Co (preferred) | ~1.5% | |
| 5 | NEE | NextEra Energy (preferred) | ~1.3% | |
| 6 | MS | Morgan Stanley (preferred) | ~1.2% | |
| 7 | GS | Goldman Sachs Group (preferred) | ~1.1% | |
| 8 | USB | U.S. Bancorp (preferred) | ~1.0% | |
| 9 | APO | Apollo Asset Management (preferred) | ~0.9% | |
| 10 | MET | MetLife (preferred) | ~0.9% |
What's the case for PFFD?
PFFD is Global X's low-cost US preferred-stock ETF. It holds a broad basket of US-listed preferred securities, weighted heavily toward banks and other financials, and tracks the ICE BofA Diversified Core U.S. Preferred Securities Index. It charges just 0.23%, roughly half the fee of the category giant PFF, yields around 6.3%, and pays monthly. It is an income holding, not a growth fund, and its main draw is being a cheaper alternative to PFF.
In its favour: it gives you ICE BofA Diversified Core U.S. Preferred Securities Index exposure in one ticker at a 0.23% expense ratio, which is simple to hold and cheap to own.
What should you weigh before buying PFFD?
- Cost vs alternatives: 0.23% is the fee; compare it to funds tracking a similar index.
- Concentration: check how much of PFFD sits in its largest holdings (WFC, BAC, C).
- Overlap: if you already own a broad-market fund, you may already hold much of this.
- Tracking scope: PFFD only gives you ICE BofA Diversified Core U.S. Preferred Securities Index; it will not capture what sits outside that index.
How do you decide if PFFD is a buy?
The useful question is rarely “will PFFD 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 PFFD 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 PFFD
The bottom line: PFFD is a low-cost core building block for ICE BofA Diversified Core U.S. Preferred Securities Index exposure, not a tactical bet on a single name. If you want ICE BofA Diversified Core U.S. Preferred Securities Index exposure and the 0.23% 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 PFFD with Walnut
Use PFFD 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 PFFD a good ETF to buy?
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Walnut is informational, not investment advice. Whether PFFD fits depends on your goals, time horizon, and what you already hold. It tracks ICE BofA Diversified Core U.S. Preferred Securities Index at a 0.23% 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 PFFD actually hold?
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PFFD tracks ICE BofA Diversified Core U.S. Preferred Securities Index. Its largest positions include WFC, BAC, C, JPM, NEE and others (approximate, verify on Global X (Mirae Asset)'s fund page). The holdings are what you are really buying, not the ticker.
What is PFFD's expense ratio?
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0.23% 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 PFFD pay a dividend?
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PFFD distributes a dividend with an approximate yield of ~6.3% (mid-2026). See the PFFD dividend page for how distributions work. Verify the current figure with Global X (Mirae Asset).
What are the risks of buying PFFD?
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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 BofA Diversified Core U.S. Preferred Securities Index matches the exposure you actually want. PFFD only gives you ICE BofA Diversified Core U.S. Preferred Securities Index, not what sits outside it.
How do I decide if PFFD is right for me?
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Start from your goal, then check four things: what PFFD 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 Global X (Mirae Asset) or your broker. Nothing here is a recommendation to buy, sell, or hold any security.