Global X - U.S. Preferred ETF (PFFD)
JPMorgan Chase & Co. Boosts Position in Global X U.S. Preferred ETF $PFFD
JPMorgan Chase and Co. lifted its stake in shares of Global X U.S. Preferred ETF (NYSEARCA:PFFD) by 200.8% during the undefined quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 107,691 shares of the company's stock after acquiring an additional 71,884 shares
PFFD: Lagging Competitors In A Lagging ETF Category
The Global X U.S. Preferred ETF continues its downtrend in asset value and distributions. The ETF offers a low expense ratio among peers but lags in total return, risk-adjusted performance, and dividend growth. I maintain a "Sell" rating on PFFD, suggesting VRP and PFXF as more attractive alternatives for preferred stock exposure.
PFFD Under The Microscope: Allocation And Portfolio Structure
The Global X U.S. Preferred ETF provides diversified exposure to preferred securities, with an emphasis on traditional fixed-rate preferred stocks. PFFD's portfolio includes baby bonds, mandatory convertibles, and floating-rate securities, offering yields ranging from 5.2% to nearly 8%. The fund maintains an average credit rating around Baa3, balancing moderate credit risk with attractive income potential.
Foundations Investment Advisors LLC Invests $294,000 in Global X U.S. Preferred ETF $PFFD
Foundations Investment Advisors LLC bought a new stake in Global X U.S. Preferred ETF (NYSEARCA:PFFD) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 15,605 shares of the company's stock, valued at approximately $294,000. A number of other institutional investors have also
Alteri Wealth LLC Purchases 3,286 Shares of Global X U.S. Preferred ETF $PFFD
Alteri Wealth LLC boosted its position in shares of Global X U.S. Preferred ETF (NYSEARCA:PFFD) by 7.4% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 47,906 shares of the company's stock after purchasing an additional 3,286 shares during the quarter. Alteri
PFFD's Portfolio Breakdown
Global X U.S. Preferred ETF provides broad exposure to preferred securities, with a diversified portfolio emphasizing traditional fixed-rate preferred stocks and moderate BBB average credit quality. The fund includes higher-yielding segments like baby bonds and convertible securities, particularly those trading below par, which enhance overall income potential. With a low expense ratio of 0.23% and over 220 holdings, PFFD offers cost-effective, diversified access to the U.S. preferred market.
PFFD ETF's Portfolio Breakdown: Attractive For Those Seeking Yield
Global X U.S. Preferred ETF offers diversified exposure to preferred securities, with a $2.28B portfolio and a low 0.23% expense ratio, appealing for income-focused investors. Yield opportunities exist: baby bonds below par yield 7.23%, mandatory convertibles yield 7.24%, and fixed-to-floating preferreds yield 8.15%. Despite modest 5-year returns, PFFD's credit quality and yield profile make it a reasonable choice for conservative income portfolios seeking stability.
Debunking Preferred-Stock ETF Holdings Part 8: PFFD's Portfolio Breakdown
The Global X U.S. Preferred ETFP aims to mirror the performance of the ICE BofA Diversified Core U.S. Preferred Securities Index. PFFD holds around $2.31 billion in net assets, with a total expense ratio of 0.23% and approximately 216 holdings. The average credit score of PFFD's portfolio is Baa3, based on Moody's ratings and some adjustments.
PFFD: Shrinking Value And Distribution
Global X U.S. Preferred ETF tracks an index including U.S. preferred stocks of all kinds. PFFD is concentrated in top issuers, especially large banks. PFFD has a bond-like return with stock-like risk, underperforming a high-yield bond benchmark and several preferred stocks ETFs.
PFFD: Sell In May, Go Away, Don't Come Back
Preferred shares have underperformed the wider market due to asymmetric returns and asymmetries of information and market power that disadvantage preferred shareholders compared to common equity and debt holders. Retail investors are often misled about the downside protection and safety of preferred shares, which is not historically accurate. The annual Federal Reserve Stress Tests have caused seasonality. PFFD has suffered from substandard, and often negative, second half returns.
PFFD: A 'Preferred' High Yield ETF Value Trap
The PFFD ETF seeks to provide investors with "high yield" income by investing in a broad basket of preferred stock issues. The majority of preferred stock held in the PFFD ETF are issued by financial institutions and utility companies. Income-oriented investors are attracted by the "shiny object" of a 6.4% yield and the fact that preferred shares are higher on the distribution/assets claims ladder as compared to common stock.
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PFFD: I'd Buy As 'Higher For Longer' Narrative Fades
Global X U.S. Preferred ETF is a fund that invests in high-yield preferred stocks, which have recently seen a price crash due to Fed rate hikes. With the Fed abandoning its "higher for longer" narrative, this could provide an opportunity for investors. The fund offers diversification and safety through a basket of over 200 preferred stocks, with a focus on financial companies.
PFFD: Preferreds From Financials Make Sense Here
Global X U.S. Preferred ETF is a good investment option due to its unique characteristics, market performance, and potential for high yield. The PFFD ETF's portfolio consists of preferred shares from various sectors, with financial companies dominating the holdings. PFFD offers competitive features like a low expense ratio and high yield potential, making it an attractive investment option.
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While much lower in yield, this is a perfect fund for retirees seeking tax-free income.
PFFD: Higher For Longer Interest Rates Detrimental To Preferred Shares
PFFD provides exposure to a broad index of preferred securities. However, broad indices are financials heavy, as they are the largest issuers of preferred shares. Since the root cause of the March regional bank crisis, higher interest rates, have not been resolved, I believe systemic risks still remain. I recommend investors seeking preferred share exposure to consider the PFXF ETF as an alternative, as it excludes financials.
PFFD: Best Among Its Peers Fundamentally, Some Technical Improvements
The Global X U.S. Preferred ETF (PFFD) is recommended for its attractive metrics, including a low expense ratio and high yield potential. The ETF is heavily weighted in the Financials sector and has a significant overweighting in Utilities, posing a risk of underperformance in a tech-led market. Despite some risks, the PFFD is considered a good choice for yield-focused investors, offering yields about a full percentage point above investment-grade corporate bonds.
PFFD: Beware Financials Exposure
PFFD provides exposure to a broad index of preferred securities. PFFD has 71% exposure to financial preferreds.
PFFD: Own This When Yields Are Falling
PFFD provides exposure to a broad index of preferred securities. PFFD is dominated by fixed-coupon preferreds.
Rather Than Rely on Bond Income, Check Out PFFD
It's been a rough and tumble 2022 for the bond market with prices dropping and yields rising in turn. That could all change, however, if bond demand picks up in 2023.