What this ETF is trying to do

The iShares Preferred and Income Securities ETF (PFF) is designed to provide investors with income. It focuses on preferred securities, which are a type of investment that usually pays a regular distribution to the person holding them.

What the numbers show

As of October 9, 2026, the share price of PFF was $29.38. To understand how the price has changed, we can look at the price returns:

• Year-to-Date (YTD) Price Return: -5.10%

• One-Year Price Return: -6.61%

• Three-Year Price Return: 1.14%

The "price return" only tracks the change in the share price. However, "total return" includes both the price change and the distributions paid out. The total returns for PFF are:

• YTD Total Return: -1.26%

• One-Year Total Return: -1.53%

• Three-Year Total Return: 21.36%

For example, the estimated price from roughly one year ago was $31.46. If an investor had put $10,000 into the ETF based on that estimated price, the value of those shares alone (without counting distributions) would have declined by approximately 6.61%.

Income and distribution explanation

PFF pays distributions usually every month. Over the last 12 months, it made 12 payments totaling $1.63 per share. This results in a distribution yield of approximately 5.55%.

It is important for beginners to know that a high distribution yield does not guarantee a profit. An investor can receive cash payments while the share price of the ETF goes down.

NAV erosion explanation

"NAV erosion" happens when the underlying value of an ETF's assets declines over time. StockValueFinder uses an erosion-risk score to measure this. PFF has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk, not a guarantee that the fund's value has collapsed.

Pros

• Regular Income: The ETF provides monthly distributions.

• Long-term Total Return: The three-year total return is positive at 21.36%.

Cons

• Recent Price Decline: Both the YTD and one-year price returns are negative.

• Erosion Risk: The fund has a "mild" erosion-risk label.

Beginner takeaway

PFF is an income-focused ETF. While it pays monthly distributions, the share price has declined over the last year. Investors often care about "principal stability," which means they want their original investment amount to stay steady while they collect income. In this case, the total return is higher than the price return because the distributions helped offset some of the share-price decline.