Global X U.S. Preferred ETF

Global X U.S. Preferred ETF (PFFD) tracks the ICE BofA Diversified Core U.S. Preferred Securities Index. As of May 31, 2026, it held 224 preferred stocks from banks, utilities and other mostly U.S. companies. Preferred stock is a hybrid: it pays a set dividend and ranks between bonds and common stock. PFFD stands out for cost. Its 0.23% expense ratio is the lowest among the similar funds compared, which average 0.87%, and it pays monthly.

• Over the year to Oct 27, 2026, PFFD returned -6.2%, 5th of 6 among similar funds.
• Its 5-year annualized return was -1.9%.
• Its worst full calendar year was 2022 (-20.1%); its best was 2024 (+7.3%).
• The deepest fall in its price history was 24.1% (Nov 5, 2021 to Oct 19, 2023), not yet recovered.

As of May 31, 2026, the fund held 224 securities; the ten largest made up 21.16% of assets.

By sector

• Over the three months to May 31, 2026, investors withdrew a net $47.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.05%, +4.49%, -4.13%.

PFFD is an index fund. It aims to match the price and yield performance, before fees, of the ICE BofA Diversified Core U.S. Preferred Securities Index. ICE Data Indices runs the index, and it is independent of the fund's adviser, Global X Management Company. The index includes fixed-rate, floating-rate and variable-rate preferreds. It also includes cumulative preferreds, where missed dividends must be paid before common shareholders get anything, along with non-cumulative and trust preferreds. To qualify, a security must be listed on a U.S. exchange, priced in dollars and have at least $50 million outstanding. It must also pass price, liquidity and maturity tests.

Each security's weight depends on its market value: the amount outstanding times the price, plus accrued interest. No single issuer can exceed 4.75% of the index. Issuers above 4.5% are capped at 23% combined, checked monthly. That cap explains why Boeing, the largest holding at 4.70% as of May 31, 2026, sits just under the limit. The index is rebalanced quarterly and reweighted monthly.

The fund uses representative sampling. That means it may hold a sample of the index that matches its key traits instead of every security. The adviser expects the fund's correlation with the index to exceed 95%. It does not move to cash when markets fall. It may lend up to one-third of its assets. The fund held no derivatives as of May 31, 2026, and it uses no leverage.

• PFFD charges 0.23% a year, versus an average of 0.87% for the similar funds below (1st of 6, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $24 in the first year and $293 over 10 years (assuming a 5% annual return).

PFFD's main appeal is a high monthly payout from a broad, low-cost basket of preferred stocks, but its price can swing a lot.

PFFD paid $1.20 a share over the 12 months to October 27, 2026. That works out to a 6.98% yield, paid monthly. The income comes with real price risk. The fund launched in 2017, so it has no record from the 2008 crisis. During the 2020 COVID crash, it lost 11.89% in the quarter ending March 31, 2020. In 2022 it fell 20.47%, its worst calendar year. Its deepest price drop was 24.1%, from November 5, 2021, to October 19, 2023. It had not fully recovered as of October 27, 2026. Retirees who had to sell shares for spending during that stretch would have locked in losses. Costs are low: the SEC's standard example puts them at $24 in the first year on $10,000. Past results don't predict future returns, and a plan needs to look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).