High-Yield Preferred ETFs Stabilize After Downdraft

The largest exchange traded fund (ETF) focused on “Preferred Stocks”, iShares S&P U.S. Preferred Stock (PFF) has stabilized this week from the June carnage that it experienced in terms of a steep downdraft and institutional selling amid the all too familiar rising rate fears in the marketplace.

PFF has an impressive $10.7 billion in assets under management, with the next closest competitor in the space, PowerShares Preferred Portfolio (PGX) amassing $2.3 billion in AUM.

Currently, PFF boasts a 5.85% yield and PGX a 6.51% yield.

In terms of portfolio composition, none of these products are created identically and may have varying exposures to different equity sectors if not international exposure in some cases as well.

Source:  Paul Weisbruch, Street One Financial

iShares S&P 500 US Preferred Stock Index Fund (PFF) and the PowerShares Preferred Portfolio (PGX) are components of the D2 Capital Management Multi-Asset Income Portfolio.

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.