Who Owns PFF and What the Fund Tracks
PFF is the iShares Preferred and Income Securities ETF, but the fund is managed by Invesco, which acquired the iShares U.S. Preferred Stock ETF from BlackRock in 2024 as part of a broader ETF restructuring. PFF tracks the S&P U.S. Preferred Stock Index, which measures the performance of U.S. preferred securities with a market value focus, and the fund remains one of the most liquid vehicles for investors seeking preferred exposure. The fund is domiciled in the United States and trades on the NYSE Arca exchange under the ticker PFF, with Invesco serving as the investment adviser and distributing shares through its ETF platform. The underlying index is maintained by S&P Dow Jones Indices, which applies eligibility and weighting rules to the universe of U.S. preferred stocks. Invesco reports the fund's portfolio composition, daily NAV, and holdings on its official product page, which investors can access through the Invesco ETF website. The fund's structure as a passively managed ETF means Invesco does not actively select individual preferred issues but instead replicates the index within a defined tracking error band.
The fund's primary objective is to track the S&P U.S. Preferred Stock Index, which includes exchange-traded preferred securities that pay fixed or floating dividends and rank senior to common equity in a company's capital structure. PFF does not aim to outperform the index but to minimize tracking error while providing investors with a diversified basket of preferred stocks across sectors such as financials, utilities, and industrials. The fund's prospectus, filed with the U.S. Securities and Exchange Commission, outlines the investment strategy, risks, and fee structure, and investors can review the latest prospectus on the SEC's EDGAR system. Invesco publishes daily portfolio holdings data and fund factsheets that show the composition, sector weights, and average credit quality of the underlying preferred securities. The fund's passive management approach keeps operating expenses low relative to actively managed preferred funds, and the expense ratio is disclosed in the fund's summary prospectus and annual report. PFF's structure as a registered investment company means it is subject to SEC oversight, regular reporting requirements, and rules that protect shareholders and ensure transparency.
PFF Assets Under Management, Flows, and Expense Ratio
As of the latest available data, PFF manages tens of billions of dollars in assets, making it one of the largest preferred stock ETFs in the market, and the fund's AUM is reported daily on Invesco's ETF platform and financial data providers. The fund has attracted significant flows over the years as investors have sought higher yields and lower volatility than common stocks, and net inflows or outflows are disclosed in Invesco's monthly ETF flow reports. The fund's expense ratio is set at a level that reflects its passive index-tracking mandate, and the ratio is deducted from fund assets and disclosed in the fund's fee table and annual report. PFF's low cost structure relative to actively managed preferred funds is a key factor in its popularity among institutional and retail investors looking for efficient preferred exposure. The fund's liquidity is supported by authorized participants who create and redeem shares in-kind, and the fund's average daily trading volume on the NYSE Arca exchange is reported by market data providers. Invesco's ownership of the fund and its integration into the broader iShares and Invesco ETF ecosystem means PFF benefits from the firm's distribution, technology, and compliance infrastructure.
Invesco's acquisition of the iShares U.S. Preferred Stock ETF from BlackRock brought PFF into a larger ETF family that includes equity, fixed income, and multi-asset funds, and the transaction was completed in 2024 as part of BlackRock's divestiture of certain iShares ETFs. The fund's assets are held in custody by a qualified custodian, and Invesco acts as the investment adviser responsible for portfolio management, index replication,