Preferred shares have come into fashion for many retail investors over the last several years. During a period where Treasury rates were exceptionally low, many investors began looking for alternative sources for yield. Unfortunately, the easiest option hasn't been remotely close to the best.
Preferred Share ETFs
Many investors turned to preferred share ETFs like the iShares U.S. Preferred Stock ETF (PFF). That technique has delivered some yield for the investors, but it delivered much weaker returns than picking individual shares. We explained this concept at great length in Preferred Shares Week 147