Share-split context: A forward split was recorded on Jul 23, 2020 with coefficient 5. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

What this ETF is trying to do

The Principal Spectrum Preferred Securities Active ETF (PREF) is an exchange-traded fund that focuses on preferred securities. Preferred securities are a type of investment that usually sits between a stock and a bond. This ETF is "active," meaning managers make specific choices about what to hold to try and meet their goals.

What the numbers show

As of October 7, 2026, the share price of PREF was $18.29.

When looking at performance, it is important to distinguish between price return (how the share price moved) and total return (which includes the cash distributions paid to investors).

• Year-to-Date (YTD): The price return is -4.09%, while the total return is -0.15%.

• One Year: The price return is -4.24%, but the total return is 1.01%.

• Three Year: The price return is 11.39%, and the total return is 29.25%.

This ETF has a history of "forward splits." The most recent one happened on July 23, 2020, with a coefficient of 5. This means each old share became five new shares, and the price per share fell proportionally. A forward split does not create a gain or a loss; it simply changes the number of shares an investor owns.

Income and distribution explanation

PREF is designed to provide regular income. It usually pays distributions monthly and has made 12 payments over the last year. The distribution yield is 5.53%.

For new investors, it is important to remember that a high distribution yield alone can be misleading. A yield tells you how much cash is being paid out relative to the price, but it does not guarantee that the overall investment is growing or that the original money invested (the principal) is safe.

NAV erosion explanation

"NAV erosion" happens when the actual value of the assets inside an ETF declines over time. StockValueFinder uses an erosion-risk score to measure this risk.

PREF has an erosion score of 94, which is labeled as "Stable / sideways" with "good" severity. Additionally, the severe erosion-risk flag is false, meaning the fund's price trend and score did not trigger a severe warning.

Pros

• Positive Long-Term Total Return: The three-year total return is 29.25%.

• Consistent Income: The fund pays distributions usually every month.

• Stability Score: The erosion-risk measurement is currently rated as "good."

Cons

• Recent Price Decline: The share price has fallen over the last year (price return of -4.24%).

• Short-Term Total Return: The total return for the current year is slightly negative at -0.15%.

Beginner takeaway

PREF provides monthly income and has shown strong total returns over a three-year period. However, the share price has dipped recently. Investors often care about principal stability because they want to make sure the cash they receive in distributions isn't just a result of their original investment losing value. In this case, the erosion-risk score suggests the fund is currently stable.