At a glance
PGF charges 0.56% a year, below the 1.09% average of the 3 funds most like it (the 3rd cheapest of 4). It has $672.1M in assets, the 4th largest of that group; it paid 6.77% of its price in distributions over the past 12 months, monthly. Over the past year it returned −8.6% with distributions reinvested (S&P 500: +11.5%), 3rd of those 4 funds; over three years it returned +4.7% a year. At its worst it fell 18.7% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high. Its ten largest positions make up 20.9% of the fund, out of 99 in all.
The short version
Invesco Financial Preferred ETF (PGF) tracks the ICE Exchange-Listed Fixed Rate Financial Preferred Securities Index. That index holds fixed-rate preferred shares with no maturity date, issued mostly by US banks, brokers and insurers such as JPMorgan Chase, Wells Fargo and Bank of America. Its main draw is monthly income, with a 6.77% trailing yield as of October 27, 2026. It costs 0.56% a year, more than PGX (0.51%) and PFFD (0.23%), and it invests only in the financial sector.
Price history
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PGF -8.6% 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 | |
|---|---|---|---|---|---|---|
| PGF official prospectus, to Dec 31, 2025 | — | +3.11% | — | -0.38% | +2.76% | — |
| PGF price data to Oct 27, 2026 | -6.5% | -8.6% | +4.7% | -2.2% | — | -0.1% |
- Over the year to Oct 27, 2026, PGF returned -8.6%, 3rd of 4 among similar funds.
- Its 5-year annualized return was -2.2%.
- Its worst full calendar year was 2022 (-19.3%); its best was 2023 (+7.7%).
- The deepest fall in its price history was 23.5% (Jul 7, 2021 to Oct 19, 2023), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -6.5% | — |
| 2025 | +3.5% | +3.11% |
| 2024 | +6.0% | +6.66% |
| 2023 | +7.7% | +7.82% |
| 2022 | -19.3% | -19.19% |
| 2021 | +2.6% | +2.38% |
| 2020 | — | +7.50% |
| 2019 | — | +14.30% |
| 2018 | — | -2.72% |
| 2017 | — | +10.63% |
| 2016 | — | +1.21% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 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 18.7% over that stretch · deepest drop along the way 18.7%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7100 | |
| 2025 | $0.9100 | 0.0% |
| 2024 | $0.9100 | +2.2% |
| 2023 | $0.8900 | +6.0% |
| 2022 | $0.8400 | -3.4% |
| 2021 | $0.8700 |
What's inside
As of Jul 31, 2026, the fund held 99 securities; the ten largest made up 20.9% of assets.
| Holding | Weight | |
|---|---|---|
| JPMorgan Chase & Co. Preferred stock | 2.85% | |
| JPMorgan Chase & Co. Preferred stock | 2.49% | |
| Wells Fargo & Co. Preferred stock | 2.25% | |
| JPMorgan Chase & Co. Preferred stock | 2.11% | |
| JPMorgan Chase & Co. Preferred stock | 2.10% | |
| Bank of America Corp. Preferred stock | 2.02% | |
| Capital One Financial Corp. Preferred stock | 1.86% | |
| Allstate Corp. (The) Preferred stock | 1.78% | |
| Bank of America Corp. Preferred stock | 1.76% | |
| JPMorgan Chase & Co. Preferred stock | 1.68% | |
| Athene Holding Ltd. Preferred stock | 1.66% | |
| Citigroup Inc. Preferred stock | 1.58% | |
| M&T Bank Corp. Preferred stock | 1.57% | |
| Bank of America Corp. Preferred stock | 1.56% | |
| Morgan Stanley Preferred stock | 1.55% |
By country
United States 96.42%Bermuda 3.78%By asset type
Preferred stock 100.2%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $22.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.19%, -0.11%, -0.50%.
How it works
PGF is an index fund. It aims to match the ICE Exchange-Listed Fixed Rate Financial Preferred Securities Index, which ICE Data Indices, LLC builds and calculates. To qualify, a security must be a US dollar preferred share from a financial company (a bank, broker, finance, investment or insurance firm) with its main listing on the NYSE or Nasdaq. It must pay a fixed rate and have no final maturity date. Its payments must count as qualified dividend income, which can be taxed at lower rates. It needs a rating of at least B3 from Moody's or B- from S&P, which reaches below investment grade, and at least $250 million outstanding.
The index weights each security by its market value. It had 99 constituents as of June 30, 2026. The fund uses "sampling," which means it doesn't have to hold every index security. As of July 31, 2026, it held 102 positions and no derivatives. The ten largest made up 20.9% of assets, and five of those ten were JPMorgan Chase issues. The fund is "non-diversified," so it may put more money into fewer issuers. Portfolio turnover was 14%.
Because these shares never mature, their prices tend to move with long-term interest rates. Issuers can often redeem ("call") them early. The index may also include fixed-to-floating preferreds, which switch from a fixed rate to a floating rate, but only under set call-date conditions.
What it really costs
- PGF charges 0.56% a year, versus an average of 1.09% for the similar funds below (3rd of 4, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $57 in the first year and $702 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PGF | $57 | $179 | $313 | $702 |
In a retirement portfolio
PGF pays monthly income from financial-company preferred shares, but its price has dropped sharply at times and is tied to one sector.
PGF's main appeal is monthly income: a trailing 12-month yield of 6.77% ($0.85 a share) as of October 27, 2026. The trade-off is price risk. In the 2022 bear market it fell 18.7% from January 3 to October 12, 2022. Its deepest drop was 23.5%, from July 7, 2021 to October 19, 2023, and it had not recovered that loss as of October 27, 2026. The prospectus shows its worst quarter was a 9.09% loss in early 2020. The price history used here starts in June 2020, so it doesn't cover the 2008 crisis. Someone who has to raise cash in a bad year could lock in losses. Payouts can also be cut. Costs are 0.56% a year, or $57 on $10,000 in the first year under the SEC's standard example. 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 preferred shares of large financial firms such as JPMorgan Chase, Wells Fargo and Bank of America.
- Taxable investors who value an index limited to preferreds whose payments count as qualified dividend income, which may be taxed at lower rates.
- Investors who want a rules-based index with a $250 million minimum issue size and no derivatives (as of July 31, 2026).
Look elsewhere if
- Cost-conscious investors: PGF charges 0.56% a year, compared with 0.23% for Global X U.S. Preferred ETF (PFFD) and 0.51% for PGX.
- Investors who already own a lot of bank stocks. PGF holds almost nothing but financials, and JPMorgan issues took five of its top ten slots.
- Anyone who can't wait out long recoveries. A 23.5% drop from July 2021 to October 2023 had not been regained as of October 27, 2026.
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 PGF pay monthly dividends?
Yes. PGF pays distributions monthly. Over the 12 months to October 27, 2026, it paid $0.85 a share, a trailing yield of 6.77%. The money comes from the preferred dividends paid by the banks, brokers and insurers it holds. Payouts aren't guaranteed. Issuers can suspend preferred dividends, and the amount can change as holdings are called, replaced or reset.
What's the difference between PGF and PGX?
Both are Invesco preferred-stock ETFs. PGX is the fund whose holdings overlap most with PGF's. PGF's index is limited to preferreds from financial companies. PGX costs 0.51% a year, compared with 0.56% for PGF. It is also much larger, with $3.7 billion in net assets as of August 31, 2026, against $672 million for PGF as of July 31, 2026. Through October 27, 2026, PGX returned -9.2% over one year (PGF: -8.6%) and 5.3% a year over three years (PGF: 4.7%).
Is PGF good for retirement income?
It can provide monthly income, but its price can swing a lot. PGF yielded 6.77% over the 12 months to October 27, 2026. Its prospectus shows a 19.19% loss in 2022 and a 2.76% average annual return over the ten years to December 31, 2025. It may suit retirees who want income and can accept financial-sector risk. It's worth comparing with lower-cost or more diversified preferred funds.
How do interest rates affect PGF?
Rising rates tend to push PGF's price down. Its index holds fixed-rate preferreds with no maturity date. When rates rise, older fixed payments look less attractive, and with no maturity date, holders have no fixed point at which they get their money back. Falling rates can help prices, but issuers may then call their shares and replace them with lower-paying ones. Through October 27, 2026, PGF's one-year price return was -8.6%.
What is PGF's expense ratio?
PGF's expense ratio is 0.56% a year, which includes a 0.50% management fee, according to its August 27, 2026 prospectus. In the SEC's standard example, $10,000 earning 5% a year would pay about $57 in costs after one year, $179 after three, $313 after five and $702 after ten. That ranks third cheapest of four similar funds. The 1.09% peer average is pulled up by PFFA's 2.52%. PFFD costs 0.23%.