At a glance
It has $8.6M in assets; it paid 14.71% of its price in distributions over the past 12 months, monthly. Over the past year it returned −14.9% with distributions reinvested (S&P 500: +11.5%); over three years it returned +4.6% a year. At its worst it fell 37.5% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
ETRACS 2xMonthly Pay Leveraged Preferred Stock Index ETN (PFFL) is an exchange-traded note from UBS. It aims to pay twice the return of a preferred stock index, minus fees. It is unsecured debt, not a fund, and owns no preferred shares on investors' behalf. Its main appeal is monthly income: the trailing yield was 14.71% as of October 27, 2026. But the doubled exposure cuts both ways, and a 48.4% fall from November 2021 had still not been recovered by that date.
Price history
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PFFL -14.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PFFL price data to Oct 27, 2026 | -14.4% | -14.9% | +4.6% | -9.3% | — | -3.6% |
- Over the year to Oct 27, 2026, PFFL returned -14.9%.
- Its 5-year annualized return was -9.3%.
- Its worst full calendar year was 2022 (-39.1%); its best was 2023 (+9.0%).
- The deepest fall in its price history was 48.4% (Nov 5, 2021 to Oct 26, 2023), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -14.4% |
| 2025 | +2.3% |
| 2024 | +4.8% |
| 2023 | +9.0% |
| 2022 | -39.1% |
| 2021 | +7.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 37.5% over that stretch · deepest drop along the way 37.5%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7047 | |
| 2025 | $1.0900 | -13.5% |
| 2024 | $1.2600 | -8.0% |
| 2023 | $1.3700 | -4.9% |
| 2022 | $1.4400 | -13.8% |
| 2021 | $1.6700 |
How it works
PFFL is an exchange-traded note (ETN) issued by UBS. It trades like a fund, but it is really an unsecured IOU from the bank. UBS promises to pay an amount tied to twice the return of a preferred stock index, minus fees. Preferred stocks are shares that usually pay fixed dividends. If a company fails, they rank ahead of common stock but behind bonds. Because the note is debt, it holds no assets on investors' behalf, and there is no fund prospectus or holdings report. The index rules for choosing and weighting preferreds are set out in UBS's offering documents.
The 2x exposure is not locked in. It is reset on a set schedule. Over any stretch longer than one reset period, compounding means results can differ sharply from twice the index's return. They usually come out worse when prices zigzag. Many preferreds pay fixed dividends, so their prices tend to fall when interest rates rise, and leverage roughly doubles that effect. The note is built for short-term trading, not long-term holding.
“Monthly Pay” refers to the payments UBS makes to holders each month. Both those payments and the note's value depend on UBS. If the bank can't pay, holders could lose money no matter how the index performs. UBS can also redeem the notes early, which ends a position on the bank's timetable rather than the holder's.
What it really costs
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
PFFL is a 2x leveraged UBS note built for short-term trading, and its 48.4% drop from November 2021 had not been recovered as of October 27, 2026.
PFFL's main appeal is income. It pays monthly, and its payments over the 12 months to October 27, 2026 totaled $0.9447 per note, a 14.71% yield. The trade-off is steep risk. Its price record starts June 2, 2020, after its September 2018 launch, so it shows nothing for the 2008 crisis or the 2020 crash. In the 2022 bear market it fell 37.5% from January 3 to October 12. 2022 was also its worst calendar year, down about 39%. Its deepest drop, 48.4% from November 5, 2021 to October 26, 2023, had not been recovered as of October 27, 2026. A retiree forced to cash out in a year like that would have locked in large losses, and UBS credit risk comes on top. UBS's fees also reduce returns. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Experienced traders who want short-term, twice-leveraged exposure to preferred stocks and understand how resetting leverage and compounding can pull results away from 2x.
- Investors comfortable relying on UBS's credit, since the note owns no assets for holders and UBS can redeem it early.
- Income-focused traders who want monthly payouts (a 14.71% trailing yield as of October 27, 2026) and can stomach drops like 2022's 37.5% slide.
Look elsewhere if
- Retirees who may need to cash out in downturns: its 48.4% drop from November 2021 had not recovered by October 27, 2026.
- Long-term holders wanting plain preferred stock exposure. An unleveraged preferred stock ETF owns actual shares and avoids the compounding effects of resetting leverage.
- Investors wanting transparency: as UBS debt, PFFL files no fund holdings reports, and what it pays depends on UBS's ability to pay.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Does PFFL pay monthly dividends?
Yes, PFFL pays monthly. Because it is a UBS note, these are payments on debt rather than fund dividends. Over the 12 months through October 27, 2026, it paid $0.9447 per note, a trailing yield of 14.71%. Leverage magnifies both the income and the risk. The high payout did not protect the price: its price-based return over the same 12 months was -14.9%.
Is PFFL good for retirement income?
It fits poorly in most retirement portfolios. PFFL is a 2x leveraged ETN built for short-term trading. Its exposure resets on a schedule, so long-term results can stray far from twice the index. It fell about 39% in 2022, and its 48.4% drop from November 2021 had not been recovered as of October 27, 2026. To that date, its annualized price-based return was 4.6% over three years but -9.3% over five years.
What's the difference between PFFL and a preferred stock ETF?
The big differences are structure and leverage. A typical preferred stock ETF owns actual preferred shares for its shareholders and aims to match its index without leverage. PFFL owns nothing on investors' behalf. It is unsecured UBS debt that aims to pay twice its index's return, minus fees, and its leverage resets on a schedule. It depends on UBS's ability to pay, and UBS can redeem it early. Its swings are also larger, including a 48.4% peak-to-trough drop.
What happens to PFFL if UBS goes bankrupt?
Holders could lose some or all of their money. PFFL is an exchange-traded note, which means it is unsecured debt of UBS, not a fund. It owns no assets on investors' behalf. It pays the index return minus fees only as long as UBS can pay, so the bank's credit matters on top of preferred stock prices. UBS can also redeem the notes early, which could end a position at a time the holder did not choose.
How volatile is PFFL?
It swings a lot for an income investment. Volatility measures how widely returns move up and down. As of October 27, 2026, PFFL's annualized volatility was 15.4% over one year and 20.8% over three years. It fell 37.5% in the 2022 bear market. Its deepest drop was 48.4%, from November 5, 2021 to October 26, 2023, and it had not recovered by October 27, 2026. Its strongest full calendar year on record was 2023, when it gained about 9%.