iShares Preferred and Income Securities ETF (PFF): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Preferred Stock
Expense Ratio
0.46%
AUM
$14.0B
Dividend Yield
6.00%
Inception
2007
Beginner Score
9.5/10
What is iShares Preferred and Income Securities ETF?
PFF tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index, investing in preferred stocks issued primarily by banks, insurance companies, and utilities. Preferred stocks sit between bonds and common stocks in the capital structure, offering higher yields than most bonds but with more risk. This fund is popular with income seekers who want equity-like yields with some bond-like characteristics.
PFF is managed by BlackRock and has been available since 2007. With $14.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.46%, which means for every $10,000 you invest, you pay approximately $46 per year in management fees.
PFF at a Glance — Key Metrics
| Expense Ratio | 0.46% |
| Total Holdings | 440 |
| P/E Ratio | N/A |
| Beta | 0.40 |
| Dividend Yield | 6.00% |
| AUM | $14.0B |
| Inception Year | 2007 |
| Issuer | BlackRock |
Top 10 Holdings in PFF
PFF holds 440 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Wells Fargo Preferred | WFC-PL | 2.20% |
| 2 | Citigroup Preferred | C-PN | 2.00% |
| 3 | Bank of America Preferred | BAC-PK | 1.80% |
| 4 | JPMorgan Chase Preferred | JPM-PM | 1.70% |
| 5 | AT&T Preferred | T-PA | 1.50% |
| 6 | Danaher Preferred | DHR-PA | 1.40% |
| 7 | Goldman Sachs Preferred | GS-PD | 1.30% |
| 8 | Morgan Stanley Preferred | MS-PK | 1.20% |
| 9 | US Bancorp Preferred | USB-PH | 1.10% |
| 10 | Ally Financial Preferred | ALLY-PA | 1.00% |
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PFF Performance History
Here's how PFF has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.50%
1 Year
7.00%
3 Year
2.00%
5 Year
3.00%
10 Year
4.00%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
PFF scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 440 holdings, and has been available since 2007, giving it a proven track record.
How to Buy PFF — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "PFF" — Use the search bar in your brokerage platform to find iShares Preferred and Income Securities ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into PFF
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With PFF's expense ratio of 0.46%, a $10,000 investment would lose approximately $3,814 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of PFF
Pros
- ✓High dividend yield around 6% is significantly above most equity and bond funds
- ✓Preferred stocks offer priority over common shareholders in dividend payments
- ✓Low beta provides more price stability than common stock funds
- ✓Broad diversification across over 440 preferred securities reduces single-issuer risk
Cons
- ✗Heavy bank and financial sector concentration creates systemic risk during banking crises
- ✗Expense ratio of 0.46% is relatively high for an income-focused ETF
- ✗Interest rate sensitivity can cause significant price declines when rates rise sharply
PFF vs Similar ETFs
See how PFF stacks up against similar funds:
Frequently Asked Questions
Is PFF a good ETF for beginners?▾
PFF has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of PFF?▾
PFF has an expense ratio of 0.46%. This means for every $10,000 you invest, you pay approximately $46 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in PFF?▾
You can invest in PFF with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does PFF pay dividends?▾
Yes, PFF pays dividends with a current yield of approximately 6.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in PFF?▾
The top holdings in PFF include Wells Fargo Preferred (2.20%), Citigroup Preferred (2.00%), Bank of America Preferred (1.80%), and more. The fund holds 440 total positions, providing broad diversification across many companies.