ETF Evaluator: PIMCO Preferred and Cp Sec Act Exc-Trd () Follow This ETF

PIMCO Preferred and Cp Sec Act Exc-Trd Overview

PIMCO Preferred and Cp Sec Act Exc-Trd (PRFD) is an actively managed Taxable Bond Preferred Stock exchange-traded fund (ETF). PIMCO launched the ETF in 2023.

The investment seeks total return, consistent with prudent investment management, with a secondary objective of income generation. The fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in a diversified portfolio of preferred securities and capital securities. capital securities” include securities issued by U.S. and non-U.S. financial institutions (including, but not limited to, banks and insurance companies) that can be used to satisfy their regulatory capital requirements.

About PIMCO Preferred and Cp Sec Act Exc-Trd (PRFD)

There are 4 members of the management team with an average tenure of 3.53 years: Amit Arora (2023), Philippe Bodereau (2023), Tanuj Dora (2023) and Matthieu Loriferne (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US All Captl TR USD index with a weighting of 100%. PIMCO Preferred and Cp Sec Act Exc-Trd has 259 securities in its portfolio. The top 10 holdings constitute 44.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

PIMCO Preferred and Cp Sec Act Exc-Trd is part of the Hybrid Securities global asset class and is within the Taxable Bond ETF group. PIMCO Preferred and Cp Sec Act Exc-Trd has 40.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 30.9% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 86.1% (46.1% domestic bond, 40.0% foreign bond and 3.9% convertible bond). PIMCO Preferred and Cp Sec Act Exc-Trd has -20.8% of the portfolio in cash.

Assets Under Management

The fund has $236 million in total assets, which is below the $1 billion average for the Preferred Stock category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PRFD Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO Preferred and Cp Sec Act Exc-Trd expense ratio is above average compared to funds in the Preferred Stock category. PIMCO Preferred and Cp Sec Act Exc-Trd has an expense ratio of 0.73%, which is 26% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO Preferred and Cp Sec Act Exc-Trd has a portfolio turnover rate of 42%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 38% for the Preferred Stock category.

Recently, in the month of July 2026, PIMCO Preferred and Cp Sec Act Exc-Trd returned -0.9%, which earned it a grade of F, as the Preferred Stock category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

PIMCO Preferred and Cp Sec Act Exc-Trd has a trailing yield of 5.83%, which is below the 6.18% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO Preferred and Cp Sec Act Exc-Trd Grades

Year to date, the ETF has returned 0.9%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 5.1% over the past year (grade of C) and 8.2% over the past three years (grade of C).

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