Closest to "Bank Preferreds"
PGF
Invesco Financial Preferred ETF
ER 0.55%
Explicitly targets financial-sector preferreds (banks & insurers). This is the purest play on bank preferreds available in ETF form.
Tracks: ICE Exchange-Listed Fixed-Rate Financial Preferred Securities Index
Broad Preferreds (Heavy Bank Weight)
Most broad preferred indexes are dominated by financial issuers, so these funds already tilt heavily to banks.
PFF
iShares Preferred & Income Securities
ER 0.45%
Flagship preferred stock ETF with huge AUM. The most widely-held and liquid option for broad preferred exposure.
Tracks: ICE Exchange-Listed Preferred & Hybrid Securities
PSK
SPDR ICE Preferred Securities
ER 0.45%
Solid liquidity with derivatives depth; tracks the ICE benchmark for preferred securities.
Tracks: ICE Exchange-Listed Fixed & Adjustable Rate Preferreds
PFFD
Global X U.S. Preferred
ER 0.23%
Low-cost broad sleeve — excellent for cost-conscious investors seeking core preferred exposure.
Tracks: ICE BofA Diversified Core U.S. Preferreds
PGX
Invesco Preferred
ER 0.51%
Focuses on fixed-rate preferreds; provides stable coupon income with less rate sensitivity than adjustable alternatives.
Tracks: ICE BofA Core Plus Fixed-Rate Preferreds
Rate-Sensitivity Alternative (Still Mostly Financial Issuers)
VRP
Invesco Variable Rate Preferred
ER 0.50%
Focuses on floating/variable-rate preferreds to reduce duration risk. Ideal for rising rate environments or when you want to minimize interest rate sensitivity.
Tracks: ICE Variable Rate Preferred & Hybrid Index
Leveraged ETN (Not Bank-Only; Use with Caution)
PFFL
UBS ETRACS 2× Monthly Pay Leveraged Preferred Stock ETN
Leveraged 2×
2x leveraged exposure to a preferred-ETF index. Not bank-only. Monthly distributions.
Note: This is an ETN with issuer credit risk (UBS). Use only for tactical positioning with full understanding of leverage and credit risks.
⚠️ Important Leverage & Credit Risk Warnings
PFFL uses 2x leverage, which amplifies both gains and losses. Additionally, as an Exchange-Traded Note (ETN), it carries the credit risk of the issuer (UBS). If UBS were to default, you could lose your entire investment regardless of the underlying index performance. ETNs are unsecured debt obligations.
If You Want to Avoid Bank Preferreds (For Contrast)
PFXF
VanEck Preferred Securities ex Financials
ER 0.40%
Explicitly excludes financials from its holdings. Useful as a foil if you're measuring the bank exposure in the funds above, or if you want preferred income without financial sector concentration.
Provides preferred exposure to utilities, REITs, industrials, and other non-financial sectors.
Quick Picks by Use-Case
Pure financials tilt:
PGF — The most direct exposure to bank and insurer preferreds.
Manage rate risk (floaters):
VRP — Variable-rate preferreds reduce duration sensitivity.
Tactical/derivatives depth:
PSK — Solid liquidity; tracks ICE benchmark for options and trading.
Avoid banks:
PFXF — Excludes all financial sector exposure.
Enhanced yield (with leverage risk):
PFFL — 2× leveraged, but with ETN issuer credit risk.
Understanding Preferred Securities
Preferred stocks are hybrid securities that sit between bonds and common equity in the capital structure. They typically offer:
- Higher yields than common stocks and many bonds
- Priority over common equity in dividend payments and liquidation
- Limited upside compared to common stocks
- Interest rate sensitivity similar to bonds (especially fixed-rate preferreds)
- Credit risk tied to the issuing company's financial health