2024-06-06 17:59:53 ET
Summary
- AAM Low Duration Preferred and Income Securities ETF offers stable returns and low duration for investors seeking income streams with minimal rate risk.
- PFLD is the first ETF of its kind, targeting short-duration preferred securities with a duration of less than 5 years.
- The PFLD fund is heavily diversified and has a high concentration in the banking and financial services sectors, offering attractive relative yield.
Investors are always looking for ways to enhance the income streams of their portfolios, while minimizing exposure to rate risk during periods of rising interest rates and volatile markets. The way you do that is by tightening up your duration (sensitivity to rates), and by allocating to bonds or preferred securities. Many investors still don’t like bonds, so they instead turn to preferreds as a way of getting some relatively more stable returns. Turns out, there’s a fund that tilts on the low-duration preferred side - the AAM Low Duration Preferred and Income Securities ETF (PFLD)....
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For further details see:
PFLD: Good If Still Nervous About Rates