PFF

The iShares Preferred & Income Securities ETF (PFF) is an exchange-traded fund that seeks to track the performance of an index composed of preferred equity securities of large-cap U.S. companies that pay consistent income. The ETF is managed by BlackRock (iShares) and trades under the ticker PFF on NYSE Arca.

Classified as a U.S. preferred equity ETF focused on income generation, PFF aims to reflect, before fees and expenses, the combined price and income return of the stocks included in its benchmark index.

The fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of an index that includes eligible preferred shares based on market size and liquidity.

PFF’s benchmark includes U.S. preferred securities, weighted by float-adjusted market capitalization with periodic rebalance to reflect changes in the eligible security universe, including additions, deletions, and weight adjustments.

Diversification and sector exposure

PFF provides exposure to the U.S. preferred equity market, a hybrid segment between fixed income and common equity, with exposure across sectors such as:

• Financials (banks and insurers).

• Utilities.

• Energy.

• Telecommunications.

• Real estate.

This composition reflects companies that traditionally issue preferred shares with income characteristics that combine elements of equity and fixed income.

Structure and costs

Shares of PFF are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a competitive expense ratio, typical of passively managed income ETFs, and does not charge a performance fee. PFF makes periodic income distributions, derived primarily from dividends paid by the preferred securities held in its portfolio. The ETF has a single share class and trades exclusively under the ticker PFF.

History and evolution of the ETF

The iShares Preferred & Income Securities ETF was launched in 2007, at a time when investor demand was growing for income-oriented equity strategies, particularly through instruments combining elements of fixed income and stocks.

Over time, PFF has become part of income-oriented allocation strategies, complementing traditional fixed-income and equity exposures.

Between 2020 and 2024, the ETF reflected periods of market volatility, shifts in monetary policy, and adjustments in income yields across asset classes, while maintaining high liquidity and remaining a liquid instrument within income-focused and diversified allocation structures..