What this ETF is trying to do

The PIMCO Preferred and Capital Securities Active ETF (PRFD) is an exchange-traded fund that focuses on preferred and capital securities. These are types of investments that often sit between traditional stocks and bonds.

What the numbers show

As of September 18, 2026, the share price was $49.89. To understand how the fund has performed, we look at two different types of returns: price return (the change in the share price) and total return (which includes the share price change plus distributions).

• Year-to-Date (YTD): The price return is -3.15%, but the total return is 0.72%.

• One Year: The price return is -3.83%, while the total return is 1.90%.

• Three Year: The price return is 7.09%, and the total return is 27.33%.

An estimated price from roughly one year ago was $51.87. If you had invested $10,000 based on that estimated price, the price-only decline of -3.83% over the year would mean your principal value (without counting distributions) would be approximately $9,617.

Income and distribution explanation

This ETF usually pays distributions monthly. Over the last 12 months, it made 12 payouts totaling $2.97 per share. This results in a distribution yield of approximately 5.95%.

It is important for new investors to remember that a high distribution yield alone can be misleading. A fund can pay out a high yield even if the share price is falling.

NAV erosion explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's holdings) declines over time. Investors who want steady income usually care about principal stability so their original investment doesn't disappear.

For PRFD, the erosion-risk score is 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 Total Returns: Over the one-year and three-year periods, the total returns were positive, even when the one-year price return was negative.

• Consistent Income: The fund has a history of monthly distributions.

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

Cons

• Price Decline: The share price has seen a decline both year-to-date and over the last year.

• No Holdings Data: There are currently no top holdings listed in the supplied data.

Beginner takeaway

PRFD provides regular monthly income, but its share price has fluctuated. While the price has dropped slightly over the last year, the total return (which includes the cash paid out) remained positive. Always look at both the price return and the total return to see the full picture.