Debunking Preferred-Stock ETFs Part 3: SPFF's Portfolio Breakdown
Source: SeekingAlpha
2025-03-28 04:41:39 ET
Summary
- SPFF aims to mirror the performance of the Global X U.S. High-Yield Preferred Index, investing primarily in high-yielding U.S. preferred stocks.
- The fund's portfolio includes bonds (13%), preferred stocks (83%), with a focus on high yields.
- SPFF's expected yield is around 6%, but investors face interest rate risk. We prefer CEF preferred stocks for better risk-reward balance.
- Recommended replacements include higher-rated CEF preferred stocks and specific bonds, enhancing yield without compromising credit quality.
We have previously written articles on some ETFs, such as VRP and PFF , and we plan to turn this into a series. Today, we will continue with X SuperIncome Preferred ETF (SPFF). The fund invests mostly in exchange-traded instruments. We will examine its portfolio and try to make an assumption about what yield we can expect out of its portfolio in the future....
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Debunking Preferred-Stock ETFs Part 3: SPFF's Portfolio Breakdown
Global X SuperIncome Preferred
NASDAQ: SPFF
SPFF Trading
-0.43% G/L:
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14,769 Volume:
$8.95 Open:
