PREF: Preferred ETF With Low Volatility, Average Return And A Lot Of Banks
Source: SeekingAlpha
2025-03-24 17:28:52 ET
Summary
- Principal Spectrum Preferred Securities Active ETF is an income-oriented ETF focusing on preferred securities, primarily from financial companies.
- The total return of PREF keeps pace with inflation, but long-term shareholders have seen both their capital and income going down.
- PREF has lower volatility compared to peers but lags in yield, total return, and risk-adjusted performance, making VRP and PFXF more attractive.
- Heavy concentration in banks poses systemic risk, while PFXF offers a portfolio excluding financials for concerned investors.
PREF strategy
Principal Spectrum Preferred Securities Active ETF ( PREF ) is an actively managed, income-oriented ETF launched on 07/10/2017. PREF has 125 holdings, a 30-day SEC yield of 4.68% and a total expense ratio of 0.55%. Distributions are paid monthly. As described in the prospectus by Principal Asset Management , the fund invests in preferred stocks, certain depositary receipts, junior subordinated debt and may invest in below-investment-grade preferred securities....
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PREF: Preferred ETF With Low Volatility, Average Return And A Lot Of Banks
Invesco Variable Rate Preferred
NASDAQ: VRP
VRP Trading
-0.16% G/L:
$24.265 Last:
43,223 Volume:
$24.32 Open:
