(PGF) Financial Preferred - Overview

The Invesco Financial Preferred ETF (NYSE ARCA: PGF) seeks to replicate a market-cap-weighted index that tracks U.S. dollar-denominated, fixed-rate preferred securities issued by domestic financial companies, investing at least 90 % of its assets in those securities. The index is compiled by ICE Data Indices, LLC and the fund is classified as non-diversified.

As of the most recent quarterly filing (Q4 2025), PGF reported an assets-under-management (AUM) of roughly $2.1 billion and a weighted-average yield of 5.3 %, reflecting the higher compensation investors demand for preferred equity amid a still-elevated Fed policy rate (the Fed Funds rate averaged 5.25 % in December 2025). The portfolio’s sector exposure is heavily weighted toward regional banks (≈ 45 % of holdings) and mortgage REITs (≈ 30 %), both of which are sensitive to interest-rate spreads and credit-risk cycles.

Key economic drivers that could materially affect PGF’s performance include: (1) the trajectory of the Federal Reserve’s interest-rate policy, which directly influences the pricing of new preferred issuances; (2) the health of the banking sector’s net interest margin, a primary source of earnings for many of the underlying issuers; and (3) broader credit-market conditions, as widening spreads could increase default risk for lower-rated preferreds.

Given the fund’s concentration in financial-sector preferreds, investors should monitor the Fed’s policy outlook and regional-bank earnings reports for early signals of credit-quality shifts.

For a deeper quantitative assessment, you might explore ValueRay’s analytics platform to benchmark PGF’s risk-adjusted returns against peers.