With interest rates low and the Federal Reserve (Fed) set to stay on pause through year-end, income-focused investors are expanding their search for yield. One area that has attracted attention in recent months is the preferred securities category. Since the Fed first announced a pause on rate hikes towards the end of January, U.S. preferred stock ETFs have seen $1.4 billion worth of net flows.1 However, with a large percentage of the preferred securities' allocations made up of banks and other traditional financial companies, investors may be missing opportunities for income in preferreds outside