PGX - FPE: A Preferred-Focused ETF Better Than The Rest

2024-03-22 16:15:52 ET

Summary

• First Trust Preferred Securities and Income ETF is a high-yield, actively managed fund that primarily invests in preferred securities and income-producing debt securities.
• The FPE ETF offers the potential for high yields without significantly increasing risk by focusing on preferred securities.
• FPE's heavy concentration in the financial sector exposes the fund to specific sector risks, and it is subject to interest rate and credit risk.

Preferred securities tend to not get much love by investors, but they are a unique part of the marketplace worth covering. For those looking for a hybrid of income and capital appreciation, a fund focused on this part of the investable landscape like the First Trust Preferred Securities and Income ETF (FPE) is worth focusing on. FPE is a high-yield, actively managed fund that primarily invests in preferred securities and income-producing debt securities. This investment strategy aims to provide current income and total return to investors. By focusing on preferred securities, FPE offers the potential for high yields without significantly increasing risk....

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