Global X U.S. Preferred ETF [PFFD] Stock Forecast

We take a look at the action in preferreds and baby bonds through the third week of March and highlight some of the key themes we are watching. Preferreds were down for the week due to rising Treasury yields, but most preferred CEF sectors remain positive for the month. Albemarle issued a new preferred stock with a mandatory convertible feature, offering upside participation with less downside than the common and a higher coupon.

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.

We take a look at the action in preferreds and baby bonds through the fourth week of February and highlight some of the key themes we are watching. Preferreds had a strong week with a 1%+ return, driven by a drop in Treasury yields and compression in credit spreads. Different preferreds sectors have different drawdown profiles, offering investors an opportunity to tilt to more resilient securities in anticipation of the next drawdown.

We take a look at the action in preferreds and baby bonds through the fourth week of January and highlight some of the key themes we are watching. Preferred stock and baby bond market had a good week with most sectors finishing in the green. The article discusses the curious case of Aspen insurer preferred AHL.PR.C and how the coupon conversion worked on the first call date.

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.

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.

While much lower in yield, this is a perfect fund for retirees seeking tax-free income.

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.

Is there still a chance to buy the bank dip? You bet—with nifty yields up to 9.4%!

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.

Global X U.S. Preferred ETF is a US stock and trading under the symbol PFFD

Global X U.S. Preferred ETF stock price is $19.54 today.

Yes, Global X U.S. Preferred ETF is a publicly traded company.