EDV - PFF: Currently Make Sense Only For Diversification Purposes

Summary

• iShares' PFF includes hybrid securities and preferred stocks, or those which have preference over common shares for dividend payments.
• In this respect, a comparison with others in the fixed-income asset class shows PFF's income potential.
• For capital preservation purposes during such tumultuous times, I also compare total returns with higher dividend yield provider PGX which uses more stringent credit ratings when selecting holdings.
• Sector exposure and the Fed raising interest rates are two factors that should put pressure on PFF's share price, at least in the short term.
• PFF makes sense, but only if you are short of diversification options and are considering preferred stocks.

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