At a glance
PGX charges 0.5% a year, below the 1.05% average of the 3 funds most like it (the 3rd cheapest of 4). It has $3.73B in assets, the largest of that group; it paid 6.86% of its price in distributions over the past 12 months, monthly. Over the past year it returned −9.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds; over three years it returned +5.3% a year. At its worst it fell 33.7% in the 2020 crash (S&P 500: 33.7%) and 19.4% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 13.0% of the fund, out of 270 in all.
The short version
Invesco Preferred ETF (PGX) tracks the ICE BofA Core Plus Fixed Rate Preferred Securities Index. That index holds fixed-rate preferred securities, mostly issued by large U.S. banks such as JPMorgan Chase, Bank of America and Wells Fargo. The fund pays income monthly, and its trailing 12-month yield was 6.86% as of October 27, 2026. Its 0.50% expense ratio is more than double the 0.23% charged by Global X U.S. Preferred ETF (PFFD).
Price history
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PGX -9.2% 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 | |
|---|---|---|---|---|---|---|
| PGX official prospectus, to Dec 31, 2024 | — | +6.62% | — | +0.37% | +3.32% | — |
| PGX price data to Oct 27, 2026 | -7.1% | -9.2% | +5.3% | -2.3% | +1.6% | +2.5% |
- Over the year to Oct 27, 2026, PGX returned -9.2%, 4th of 4 among similar funds.
- Its 5-year annualized return was -2.3% and its 10-year +1.6%.
- In the 2020 COVID crash it fell 33.7% and regained its old high 4.8 months after the low.
- Its worst full calendar year was 2022 (-21.1%); its best was 2009 (+19.5%).
- The deepest fall in its price history was 66.4% (Feb 6, 2008 to Mar 6, 2009), recovered by Aug 6, 2012.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -7.1% | — |
| 2025 | +3.6% | — |
| 2024 | +6.8% | +6.62% |
| 2023 | +9.6% | +9.32% |
| 2022 | -21.1% | -20.87% |
| 2021 | +3.1% | +3.08% |
| 2020 | +6.9% | +7.14% |
| 2019 | +17.7% | +17.24% |
| 2018 | -3.9% | -4.25% |
| 2017 | +10.5% | +10.84% |
| 2016 | +0.8% | +1.20% |
| 2015 | +7.9% | +8.08% |
| 2014 | +16.3% | — |
| 2013 | -2.4% | — |
| 2012 | +14.5% | — |
| 2011 | +3.5% | — |
| 2010 | +11.6% | — |
| 2009 | +19.5% | — |
| 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 | Lost 27.1% over that stretch · deepest drop along the way 33.7%, back to its old high 4.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.4% over that stretch · deepest drop along the way 19.4%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5700 | |
| 2025 | $0.6900 | -2.8% |
| 2024 | $0.7100 | -4.1% |
| 2023 | $0.7400 | +2.8% |
| 2022 | $0.7200 | 0.0% |
| 2021 | $0.7200 | 0.0% |
| 2020 | $0.7200 | -11.0% |
| 2019 | $0.8086 | -3.5% |
| 2018 | $0.8380 | -0.3% |
| 2017 | $0.8404 | -1.9% |
| 2016 | $0.8564 | -1.9% |
| 2015 | $0.8734 | -0.6% |
| 2014 | $0.8785 | -3.6% |
| 2013 | $0.9116 | -4.0% |
| 2012 | $0.9491 | +2.4% |
| 2011 | $0.9270 | -2.7% |
| 2010 | $0.9529 | -12.6% |
| 2009 | $1.0899 |
Living on PGX: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 270 securities; the ten largest made up 12.96% of assets.
| Holding | Weight | |
|---|---|---|
| JPMorgan Chase & Co. Preferred stock | 1.78% | |
| JPMorgan Chase & Co. Preferred stock | 1.52% | |
| Wells Fargo & Co. Preferred stock | 1.40% | |
| JPMorgan Chase & Co. Preferred stock | 1.32% | |
| JPMorgan Chase & Co. Preferred stock | 1.31% | |
| Bank of America Corp. Preferred stock | 1.27% | |
| AT&T Inc. Preferred stock | 1.15% | |
| Bank of America Corp. Preferred stock | 1.13% | |
| JPMorgan Chase & Co. Preferred stock | 1.05% | |
| Bank of America Corp. Preferred stock | 1.03% | |
| Capital One Financial Corp. Preferred stock | 1.03% | |
| AT&T Inc. Preferred stock | 1.00% | |
| Bank of America Corp. Preferred stock | 0.99% | |
| Morgan Stanley Preferred stock | 0.99% | |
| Morgan Stanley Preferred stock | 0.98% |
By country
United States 93.63%Bermuda 4.35%Canada 1.36%United Kingdom 0.14%By asset type
Preferred stock 99.48%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $51.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.92%, -0.17%, -1.04%.
How it works
PGX is an index fund. It tries to match the ICE BofA Core Plus Fixed Rate Preferred Securities Index, before fees, rather than beat it. Preferred securities are a cross between stocks and bonds. They usually pay a fixed dividend. If the company fails, they are paid after its bonds, and they generally carry no voting rights. ICE Data Indices picks the securities using fixed rules and weights them by market value, so the largest issues get the biggest weights.
To qualify, a security must be in U.S. dollars, issued in the U.S. market, pay a fixed coupon or dividend and have at least $100 million outstanding. Its average rating from Moody's, S&P and Fitch must be at least B3. That is well below investment grade, so speculative "junk" issues are allowed. The issuer's home country also needs an investment-grade rating. Some unlisted securities that behave like debt can qualify, including Rule 144A private placements.
The fund keeps at least 80% of its assets in index securities. It uses "sampling," which means it holds a representative slice rather than every security. The index had 264 securities as of October 31, 2025. Because larger issues get more weight, the index leans heavily on financial companies. Portfolio turnover was a low 8%. Many preferreds are callable, which means the issuer can buy them back early, often when interest rates fall.
What it really costs
- PGX charges 0.5% a year, versus an average of 1.05% for the similar funds below (3rd of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $629 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PGX | $51 | $160 | $280 | $629 |
In a retirement portfolio
PGX pays income monthly from fixed-rate preferred securities, and its trailing yield was 6.86% as of October 27, 2026, though its price can swing widely.
PGX could add monthly income. Its trailing 12-month yield was 6.86% as of October 27, 2026, or about $0.68 per share. Its price moves with interest rates and with the health of banks, its main issuers. PGX fell 66.4% from February 2008 to March 2009 and took 41 months from the bottom to recover. It dropped 33.7% in early 2020 but was back by August. In 2022 it lost 20.87%, its worst calendar year. It had not regained its January 2022 peak as of October 27, 2026. Anyone taking cash from it in such a year would have locked in losses. The SEC's $10,000 example puts its costs at $51 in year one and $629 over 10 years. 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. The trailing 12-month yield was 6.86% as of October 27, 2026.
- Investors comfortable with heavy exposure to big U.S. banks such as JPMorgan Chase, Bank of America and Wells Fargo, plus AT&T.
- Those wanting a large, plain index fund: $3.82 billion in net assets as of May 31, 2026, 8% turnover, and no leverage or options.
Look elsewhere if
- Cost-focused investors. PGX's 0.50% expense ratio is more than double the 0.23% charged by Global X U.S. Preferred ETF (PFFD).
- Anyone uneasy with big drops. PGX fell 66.4% in 2008–09 and lost 20.87% in 2022.
- Investors wanting less bank exposure. VanEck Preferred Securities ex Financials ETF (PFXF) leaves out financial issuers and charges 0.40%.
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 PGX pay monthly dividends?
Yes. PGX pays income every month. Over the 12 months to October 27, 2026, it paid about $0.68 per share, a trailing yield of 6.86%. The money comes from the fixed dividends and coupons on the preferred securities it holds, mostly from large U.S. banks. Payments can change, because issuers can call (buy back) high-paying preferreds early, often when interest rates fall. The fund then has to reinvest at lower yields.
What's the difference between PGX and PFFD?
Both are index funds that hold U.S. preferred securities. Global X U.S. Preferred ETF (PFFD) is the closest match to PGX by holdings. The biggest difference is cost: PFFD charges 0.23% a year, while PGX charges 0.50%. As of October 27, 2026, PFFD returned -6.2% over one year and 5.8% a year over three years. PGX returned -9.2% and 5.3%. PGX is the larger fund, with $3.82 billion in net assets as of May 31, 2026. PFFD had $2.15 billion as of August 31, 2026.
Is PGX good for retirement income?
PGX can be a source of monthly income, but its price is not stable. The trailing yield was 6.86% as of October 27, 2026. The fund fell 66.4% from February 2008 to March 2009 and lost 20.87% in 2022. Its official average annual return was 0.37% over five years and 3.32% over ten years, as of December 31, 2024. The fund may suit retirees who can leave the shares alone in down years and who see it as one part of a wider mix.
Why did PGX drop so much in 2022?
PGX holds fixed-rate preferreds, and their prices fall when interest rates rise. A fixed payment is worth less once new securities pay more. The prospectus names interest-rate risk as a main risk. The fund lost 20.87% in calendar 2022. From January 3 to October 12, 2022, it fell 19.4%. It had not returned to its January 2022 high as of October 27, 2026. Its heavy tilt toward bank issuers adds a second risk: trouble in the financial sector.
What is PGX's expense ratio?
PGX's expense ratio is 0.50% a year, according to its prospectus filed December 18, 2025. The SEC's standard example assumes $10,000 invested with a 5% yearly return. On that basis, costs would be about $51 after one year, $160 after three, $280 after five and $629 after ten. That is cheaper than the 1.05% average of the similar funds compared here. It is pricier than Global X U.S. Preferred ETF (PFFD) at 0.23% and VanEck's PFXF at 0.40%.