2024-07-02 14:15:51 ET
Summary
- PFFV is a Sell due to expected rate cuts, historical underperformance in autumn, and long-term investment risks.
- PFFV consists of 55 Variable Rate Preferred Shares with below average credit quality, and it is heavily weighted to banks and financial institutions.
- Any upside from a positive reception to the Fed Stress Test Results released last week will accrue to Common Equity holders. Holders of Preferred Shares have only downside risk.
The Global X Variable Rate Preferred ETF ( PFFV ) is a Sell for three reasons....
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PFFV: Double Trouble, Preferred Shares And Floating Rates - Sell