July 3, 2026, 3:45 PM EDT. Preferred stock ETFs are seeing more demand from retirees who want bond-like income with yields of 6% to 9%. Single preferred shares can be complicated, with call features and credit differences, but ETFs give diversification, professional management and liquidity. The iShares Preferred and Income Securities ETF (PFF) is the biggest in the space, holding over $13 billion and posting a 6.32% SEC yield, with about half the market's volatility. PFF has 57% of assets in financials, as banks and other firms use preferred stock to fill capital needs without diluting equity or adding standard debt. Roughly 47% of PFF's holdings are investment grade, but some are unrated and still considered high-quality. For retirees, these ETFs remain a way to steady income at a time when the bond market is in flux.
