2024-04-09 12:55:12 ET
Summary
- iShares Preferred and Income Securities ETF is a large preferred share ETF with diverse holdings in financials, industrials, and utilities.
- PFF underperformed the S&P 500 during the pandemic but offers an enticing entry point with a yield of 6.3%.
- PFF provides defensive exposure with a solid track record of delivering consistent monthly dividends, making it an attractive option for yield-seeking investors.
The iShares Preferred and Income Securities ETF (PFF) is one of the largest preferred share ETFs with almost $15 billion in AUM. PFF tracks the performance of ~450 preferred and hybrid securities (i.e., subordinated bonds for which the issuer has the optionality to postpone coupon payments without triggering chapter 11) that are issued by U.S. corporations . Also, because of its size and the fact that the asset manager here is BlackRock, the net expense ratio is relatively low at 0.46%....
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PFF: Attractive 6.5% Yield To Diversify, While Introducing Price Appreciation Potential