2024-06-22 04:21:21 ET
Summary
- AAM's Low Duration Preferred ETF offers monthly income, diversification, potential tax advantages, and lower interest rate risk compared to common shares.
- With a 6.54% 30 day SEC yield and 0.46% expense ratio, this ETF is recommended for investors seeking steady income and reduced risk.
- Preferred shares in PFLD provide fixed dividends, equity status, and higher priority in dividend payments than common shares, with lower default and call risks due to screening process.
AAM's Low Duration Preferred ETF ( PFLD ) is one I feel comfortable recommending. The benefits include monthly income, diversification to stocks and bonds, potential tax advantages, low interest rate risk as well as having higher status of dividend payments over common share dividends....
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PFLD: Reduces Interest Rate Risk For Preferreds In An ETF Wrapper