Global X Variable Rate Preferred ETF

Global X Variable Rate Preferred ETF (PFFV) tracks the ICE U.S. Variable Rate Preferred Securities Index. The index holds U.S.-listed preferred stocks whose dividends float or reset with interest rates. Its 0.25% expense ratio is half the 0.50% charged by Invesco's VRP, the most similar variable-rate fund. It pays income monthly, with a trailing yield of 8.32% as of October 27, 2026. Most of its holdings come from banks and other financial firms.

• Over the year to Oct 27, 2026, PFFV returned -0.1%, 3rd of 6 among similar funds.
• Its 5-year annualized return was +1.6%.
• Its worst full calendar year was 2022 (-13.6%); its best was 2023 (+10.8%).
• The deepest fall in its price history was 18.7% (Nov 8, 2021 to May 4, 2023), recovered by Jun 18, 2024.

As of Aug 31, 2026, the fund held 59 securities; the ten largest made up 29.62% of assets.

• Over the three months to Aug 31, 2026, investors added a net $17.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.46%, +1.06%, -0.85%.

PFFV is an index fund tracking the ICE U.S. Variable Rate Preferred Securities Index. Preferred securities are part stock, part bond: they pay regular dividends but rank below a company's bonds if it gets into trouble. This index holds only preferreds whose payouts float or reset with interest rates, including fixed-to-floating issues that pay a fixed rate at first, then a floating one. Each must be U.S.-listed, priced in dollars, have at least $50 million outstanding, meet trading minimums and have at least a year left to maturity.

Each security is weighted by market value, so larger issues count for more. No issuer may exceed 4.75%, and issuers above 4.5% may total no more than 23%. The index is rebalanced quarterly and reweighted monthly. As of January 31, 2026, it was concentrated in banking. As of August 31, 2026, the fund held 59 positions, led by Morgan Stanley (4.1%), Reinsurance Group of America (3.4%) and Bank of America (3.2%) preferreds.

Adviser Global X Management Company uses representative sampling: it may hold a sample that resembles the index instead of every issue, and expects correlation above 95%, where 100% means a perfect match. It keeps at least 80% of assets in index securities and may lend out securities worth up to one-third of total assets.

• PFFV charges 0.25% a year, versus an average of 0.83% for the similar funds below (2nd of 6, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).

It pays monthly dividends from floating-rate preferred stocks, but its heavy tilt toward banks and its 2022 losses make it a supplement to a portfolio rather than its center.

PFFV paid $1.77 per share over the past 12 months, a trailing yield of 8.32% as of October 27, 2026. It pays monthly. Floating dividends can track rising rates more closely than fixed ones, but they reset lower when rates fall, so income can shrink. The fee is 0.25% a year. In the SEC's standard example, that comes to $318 over 10 years on $10,000. The fund launched in June 2020, so it has no record from the 2008 crisis or the 2020 crash. In the 2022 bear market it fell 14.3%, and it lost 14.2% for calendar 2022. Its deepest drop was 18.7%, from November 2021 to May 2023, and it did not recover until June 2024. Anyone who had to cash out shares during that stretch would have taken a loss. Past results don't predict the future, 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).