VanEck Preferred Securities ex Financials ETF (PFXF)
PFXF's 6.7% Yield Is Safe—Unless This Credit Signal Flips First
The VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) has quietly become one of the better-performing income vehicles of the past year, returning 21% over the trailing 12 months and 8% year to date through May 7.
PFXF: Know What You Are Buying -- These Are Not Your Father's Preferred Shares
More than 50% of PFXF's assets are Mandatorily Convertible. They are effectively a bet on the common shares of the issuer without full upside. Many now trade at a substantial premium, and downside protection is limited at these levels. Income investors should be aware that dividends of the underlying assets are PIKable.
PFXF's 6.6% Yield Still Looks Safe as it Skips Banking Sector's Biggest Dividend Risks
VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) has drawn income investors with its monthly distributions and a structure that deliberately sidesteps the banking sector.
Mezzasalma Advisors LLC Buys 98,854 Shares of VanEck Preferred Securities ex Financials ETF $PFXF
Mezzasalma Advisors LLC lifted its position in VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) by 840.6% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 110,614 shares of the company's stock after acquiring an additional 98,854 shares during the period.
This Preferred ETF Deserves Preferential Treatment
Many investors are looking to reduce equity volatility while adding more non-Treasury income to their portfolios. In this environment, preferred stocks and the related ETFs may be valid considerations.
PFXF: Trading Banking Sector Issues For Idiosyncratic Risks
VanEck Preferred Securities ex Financials ETF offers preferred stock exposure without bank sector risk. That's appealing amid current financial sector uncertainties. PFXF has outperformed PFF since 2020, but its portfolio is concentrated in individual issuers, like Boeing, Albemarle, and Strategy, introducing idiosyncratic credit risk. While PFXF's 6.87% dividend yield is attractive, concentrated positions in volatile or speculative credits may erode NAV over time.
PFXF Challenges The S&P 500's Earnings Yield 6%
VanEck Preferred Securities ex Financials ETF offers exposure to non-financial preferreds with a competitive 6.78% yield and monthly distributions. PFXF's exclusion of financials, high duration, and significant issuer concentration, especially Boeing, make it sensitive to interest rates and credit spreads. The fund is attractive when long Treasury yields are high and S&P 500 earnings yield is compressed, but widening credit spreads could pressure prices, especially for lower-rated holdings.
VanEck Preferred Securities ex Financials ETF $PFXF Shares Bought by Blair William & Co. IL
Blair William and Co. IL grew its position in VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) by 8,489.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 171,788 shares of the company's stock after buying an additional 169,788 shares
Preferred Securities vs Bonds vs Equity: An Investor's Guide
Preferred securities offer income potential above bonds and lower volatility than equities. Understanding sector differences helps investors position preferreds within diversified portfolios.
Envestnet Asset Management Inc. Boosts Holdings in VanEck Preferred Securities ex Financials ETF $PFXF
Envestnet Asset Management Inc. boosted its stake in shares of VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) by 8.2% during the undefined quarter, according to its most recent filing with the SEC. The firm owned 541,207 shares of the company's stock after purchasing an additional 40,853 shares during the period. Envestnet Asset
Why Taxes Matter for Equity Income, and Where PFXF Fits
Headline yield shows income potential, but taxes reduce what you keep. Equity investors should focus on after-tax yield.
VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) Reaches New 1-Year High – What’s Next?
Shares of VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF - Get Free Report) reached a new 52-week high during mid-day trading on Friday. The company traded as high as $18.11 and last traded at $18.1150, with a volume of 174178 shares changing hands. The stock had previously closed at $18.00. VanEck Preferred Securities ex
Apollon Wealth Management LLC Sells 32,978 Shares of VanEck Preferred Securities ex Financials ETF $PFXF
Apollon Wealth Management LLC lessened its holdings in shares of VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) by 66.1% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 16,936 shares of the company's stock after selling 32,978 shares during the quarter. Apollon
PFXF: An Attractive Risk-Reward Heading Into 2026
VanEck Preferred Securities ex Financials ETF maintains a high 67.3% allocation to securities maturing in 30 years or more. This should provide a tailwind for returns in 2026 should U.S. 30-year yields decline, driven by the potential conclusion of Fed policy normalization. U.S. GDP growth is projected to accelerate in 2026, indicating a manageable credit risk environment for non-investment grade securities.
PFXF's Portfolio Breakdown
VanEck Preferred Securities ex Financials ETF offers a diversified portfolio, with $1.89B in assets and a low 0.4% management fee. The fund's core holdings are baby bonds, mandatory convertibles, and fixed-rate preferreds, most trading below par with 6.8%-7.1% yields. Floating and fixed-to-floating rate securities provide higher yields but come with increased risk, making them suitable for risk-tolerant investors.
PFXF's Complete Portfolio Review
PFXF offers diversified exposure to preferred securities, with a 6.77% distribution yield and a 0.40% management fee. The portfolio is well-diversified across baby bonds, mandatory convertibles, fixed-rate, and resettable preferred stocks, emphasizing yield and credit quality. PFXF provides attractive yields across its segments, making it a compelling option for income-focused investors seeking preferreds outside the financial sector.
PFXF May Have Too Much Exposure To Boeing Preferred Shares
PFXF May Have Too Much Exposure To Boeing Preferred Shares
PFXF: Under The Radar Beneficiary Of U.S. Cost Cutting
The VanEck Preferred Securities ex Financials ETF has 64.7% of its portfolio allocated to long-duration preferred securities. The new U.S. administration is focused on cutting the budget deficit to around 3.00-3.50% of GDP, allowing for a stabilization in the debt/GDP ratio. Together with future Fed rate cuts, this should allow risk-free interest rates to decline.
SPY Vs. PFXF: S&P 500 Has Lower Risk Than Preferreds
SPY is expected to offer superior risk-adjusted returns that PFXF and preferred shares throughout 2025. A Monte Carlo simulation seems to demonstrate that SPY has lower downside risk than preferred share ETFs whilst maintaining an asymmetrical upside. Despite valuation and earnings growth risks, SPY could be a better option for investors than fixed income if capital preservation is the main concern.
PFXF: Preferred Stocks ETF Beating Peers, Yet Unattractive
VanEck Preferred Securities ex Financials ETF is invested in US-traded preferred stocks of non-financial companies. PFXF is quite concentrated in its top issuers, and about two-thirds of its assets are below investment grade. PFXF has outperformed its most popular competitors and a high-yield bond index since 2013.