MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Preferred ETFs Beckon Buying Opportunity After Pullback

johnNjohnN
edited April 2019 in Fund Discussions
https://www.etftrends.com/core-etf-channel/preferred-etfs-beckon-buying-opportunity-after-pullback/

Preferred ETFs Beckon Buying Opportunity After Pullback
By Todd ShriberonApril 3, 2019
Twitter Facebook LinkedIn Google+ Email

Preferred stocks and related exchange traded funds retreated along with other income-generating assets as U.S. yields spiked in response to the Federal Reserve’s tighter monetary policy, but the asset category may offer an attractive buying opportunity after the pullback.

Comments

  • rforno

    Article headline mentions plural ETFs, but then only mentions on in the actual content. Typical.

    The only preferred ETF I care to own is PFXF b/c it doesn't hold non-cumulative bank preferreds.
  • MikeMMikeM
    edited April 2019
    I'm not seeing the intrigue for owning preferred stocks unless it is strictly for income. I don't see their use in a total return portfolio. Especially from what the article says,
    the assets are vulnerable in a rising interest rate environment.
    I'm ignorant on this type of investment. Can someone offer benefits to owning?
  • johnNjohnN
    edited April 2019
    @_MikeM
    Hi sir

    Ted has PFF since late ~2010s and sold it I believe few yrs back since cutting back in equities

    I still have pff and use if almost like a corp bond mainly for incomes... The do pay nicely div every month. They have bunch of equities and varieties of vehicles... More risky than bonds for sure.. Fee us reasonable for pff.. More diverse than using just Corp bond ETF. Maybe inversely related to interest rates

    If company tank or bankrupt they will pay bonds owner first (if, companies have bonds) then preferred owners then lastly stock owners


    https://etfdailynews.com/2018/06/27/dont-ignore-preferred-stock-funds-in-your-portfolio-pff/

    https://www.etf.com/PFF#overview

    Https://seekingalpha.com/article/4207114-pff-avoid-preferred-stocks-interest-rate-tightening-cycle
Sign In or Register to comment.