At a glance
PFLD charges 0.45% a year, below the 0.72% average of the 3 funds most like it (the cheapest of 4). It has $410.5M in assets, the 4th largest of that group; it paid 5.76% of its price in distributions over the past 12 months, monthly. Over the past year it returned +2.2% with distributions reinvested (S&P 500: +11.5%), the best of those 4 funds; over three years it returned +5.3% a year. At its worst it fell 13.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 23 months after the low. Its ten largest positions make up 10.3% of the fund, out of 334 in all.
The short version
AAM Low Duration Preferred and Income Securities ETF (PFLD) is an index fund that tracks the ICE 0-5 Year Duration Preferred & Hybrid Securities Index. The index holds preferred stocks and hybrid securities whose prices are less sensitive to interest rates, and most of the issuers are banks and other financial companies. It pays income monthly. Its 0.45% expense ratio is below the 0.72% average of the similar funds compared here.
Price history
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PFLD +2.2% 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 | |
|---|---|---|---|---|---|---|
| PFLD official prospectus, to Dec 31, 2025 | — | +1.91% | — | +1.18% | — | +1.99% |
| PFLD price data to Oct 27, 2026 | +1.8% | +2.2% | +5.3% | +0.6% | — | +2.6% |
- Over the year to Oct 27, 2026, PFLD returned +2.2%, 1st of 4 among similar funds.
- Its 5-year annualized return was +0.6%.
- Its worst full calendar year was 2022 (-12.7%); its best was 2023 (+8.1%).
- The deepest fall in its price history was 15.5% (Nov 4, 2021 to May 4, 2023), recovered by Sep 12, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.8% | — |
| 2025 | +1.5% | +1.91% |
| 2024 | +5.5% | +5.97% |
| 2023 | +8.1% | +8.21% |
| 2022 | -12.7% | -13.24% |
| 2021 | +4.5% | +4.59% |
| 2020 | — | +5.24% |
| 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 13.7% over that stretch · deepest drop along the way 13.7%, back to its old high 23 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8100 | |
| 2025 | $1.2900 | -11.6% |
| 2024 | $1.4600 | -0.7% |
| 2023 | $1.4700 | +23.5% |
| 2022 | $1.1900 | +4.4% |
| 2021 | $1.1400 |
What's inside
As of Jul 31, 2026, the fund held 334 securities; the ten largest made up 10.3% of assets, and 6.37% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| BP CAPITAL MARKETS PLC Bonds and notes | 1.15% | |
| GOLDMAN SACHS GROUP INC Preferred stock | 1.10% | |
| CVS HEALTH CORP Bonds and notes | 1.09% | |
| WELLS FARGO & COMPANY Preferred stock | 1.07% | |
| JPMORGAN CHASE & CO Preferred stock | 1.04% | |
| JPMORGAN CHASE & CO Preferred stock | 1.02% | |
| CHARLES SCHWAB CORP Preferred stock | 0.98% | |
| WELLS FARGO & COMPANY Preferred stock | 0.98% | |
| VODAFONE GROUP PLC Bonds and notes | 0.98% | |
| GOLDMAN SACHS GROUP INC Preferred stock | 0.90% | |
| BANK OF AMERICA CORP Preferred stock | 0.89% | |
| JPMORGAN CHASE & CO Preferred stock | 0.82% | |
| TRUIST FINANCIAL CORP Preferred stock | 0.80% | |
| AMERICAN EXPRESS CO Preferred stock | 0.76% | |
| GOLDMAN SACHS GROUP INC Preferred stock | 0.74% |
By country
United States 87.04%Canada 7.34%United Kingdom 2.57%Ireland 0.6%Bermuda 0.57%By issuer
Companies 97.5%US government agencies 1.1%The bonds mature in 31.3 years on average (weighted by size), with an average coupon of 6.14%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $11.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.65%, +0.26%, +0.01%.
How it works
PFLD is passively managed. It aims to match the ICE 0-5 Year Duration Preferred & Hybrid Securities Index from ICE Data Indices, an affiliate of the New York Stock Exchange. The index holds US dollar preferred stock and hybrid securities that have an option-adjusted duration under five years. Duration measures how much a price moves when rates change. A three-year duration means a drop of about 3% if rates rise 1%. The "option-adjusted" version also accounts for an issuer's right to call (repay) a security early. A holding stays in the index until its duration reaches six years. As of December 31, 2025, the index had 325 components and an effective duration of 1.95 years.
To qualify, a preferred stock needs at least $100 million outstanding, a hybrid needs $250 million, and the price can't be above 105% of face value. Credit quality can be anything, so the index includes junk-rated and unrated securities. Holdings are weighted by market value, with no single issuer above 4.75%, and the index rebalances on the last calendar day of each month.
The fund generally buys every security in the index but may hold a representative sample instead. Portfolio turnover was 150%. Issuers can call securities when rates fall, and some hybrid issuers can defer payments.
What it really costs
- PFLD charges 0.45% a year, versus an average of 0.72% for the similar funds below (1st of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $46 in the first year and $567 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PFLD | $46 | $144 | $252 | $567 |
In a retirement portfolio
PFLD pays monthly income from preferred and hybrid securities, and it has swung far less than stocks, but it has not been a safe haven.
PFLD paid $1.10 per share over the trailing 12 months, a 5.76% yield as of October 27, 2026, with payments made monthly. The short duration did not protect it in bad markets. It lost 13.24% in 2022, its worst calendar year, and 14.62% in the first quarter of 2020. Its deepest drop was 15.5%, from November 4, 2021, to May 4, 2023, and it did not recover until September 12, 2024. The fund launched in 2019, so it has no 2008 record. Anyone who had to sell shares in 2022 would have locked in losses. The holdings lean heavily on financial companies, which can struggle together. In the SEC's standard example, costs on $10,000 come to $46 after one year and $567 after ten. 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
- Income seekers who want monthly payouts from bank and corporate preferreds; the trailing yield was 5.76% as of October 27, 2026.
- Investors who want preferred exposure with less rate sensitivity; the index's effective duration was 1.95 years as of December 31, 2025.
- Cost-conscious investors: the 0.45% expense ratio is well below FPE's and FPEI's 0.85% and about the same as PFF's 0.46%.
Look elsewhere if
- Investors who need stable prices: PFLD fell 15.5% from November 2021 to May 2023 and didn't recover until September 2024.
- Investors who want sector diversification, since the index was heavily weighted toward financial companies as of December 31, 2025.
- Investors seeking growth: the fund's average annual return was 1.18% over the five years ended December 31, 2025.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Does PFLD pay monthly dividends?
Yes. PFLD pays monthly. Over the trailing 12 months it paid $1.10 per share, a yield of 5.76% as of October 27, 2026. The income comes from preferred stocks and hybrid securities. Payments are not guaranteed: some hybrid issuers can defer payments, and issuers can call (repay) securities when rates fall, which may lower the fund's income.
What's the difference between PFLD and PFF?
Both are low-cost index ETFs of preferred and income securities, but PFLD only holds securities with an option-adjusted duration under five years. They share only about 21% of their holdings. Fees are almost the same: 0.45% for PFLD and 0.46% for PFF. PFF had $13.1 billion in net assets as of June 30, 2026. PFLD had $410.5 million as of July 31, 2026. PFLD returned 2.2% over one year as of October 27, 2026, while PFF lost 4.1% as of October 30. Over three years, PFF returned 6.3% a year and PFLD 5.3%.
Does PFLD lose money when interest rates rise?
It can, and it did. Low duration reduces rate sensitivity but doesn't remove it. In the 2022 bear market, when rates rose sharply, PFLD fell 13.7% between January 3 and October 12, 2022, and took 23 months to recover. For a full calendar year, it lost 13.24% in 2022. Credit worries about the banks that issue most of its holdings can also push prices down, whatever rates are doing.
What does PFLD hold?
As of July 31, 2026, PFLD held 334 securities: about 60% preferred stock and 39% bonds and notes. The largest positions were BP Capital Markets (1.15%), Goldman Sachs (1.10%), CVS Health (1.09%), Wells Fargo and JPMorgan Chase. The top 10 made up 10.3% of the fund. US issuers were 87% of assets, Canadian issuers 7% and UK issuers about 3%.
What is PFLD's expense ratio?
PFLD's expense ratio is 0.45%, according to the prospectus filed February 27, 2026. That's below the 0.72% average of the similar funds compared here and well below the 0.85% that FPE and FPEI charge. In the SEC's standard example ($10,000 invested, 5% annual return), total costs would be $46 after one year, $252 after five years and $567 after ten.