Principal Spectrum Preferred Securities Active ETF [PREF] Stock Forecast

Investors who are seeking yield generation opportunities should consider the benefits of incorporating preferred securities and related exchange traded funds into a traditional income portfolio.

With the fixed income market environment still choppy, investors are looking for ways to diversify their yield-generation capabilities. Alternative income strategies, such as preferred stocks, offer consistent income and can help manage risk.

The year 2022 as a whole could easily be attributed to heightened volatility.

Interest rates are likely to remain low in 2021, meaning investors need to be selective with income-generating asset classes. The Principal Spectrum Preferred Securities Active ETF (NYSEArca: PREF) is a great starting point.

As markets continue to process results of the 2020 election and its potential impact on regulation and policy, one thing is certain: the zero rate environment isn't likely to go away anytime soon. As yield-starved investors face dwindling opportunities in bonds, financial professionals need to find more attractive income-generating opportunities with acceptable levels of risk.

Bond yields are still low, meaning traditional income-generating assets just aren't cutting it for many investors. Enter preferred stocks and the actively managed Principal Spectrum Preferred Securities Active ETF (NYSEArca: PREF).

Interest rates are likely to remain low in 2021, meaning investors need to be selective with income-generating asset classes. The Principal Spectrum Preferred Securities Active ETF (NYSEArca: PREF) is a great starting point.

On Monday, popular brokerage app Robinhood, which has risen to notoriety among younger, tech-savvy investors this year, said it will no longer offer some favored income-generating asset classes starting next month. “Robinhood said that after Jan. 11, 2021, customers can no longer buy closed-end funds, limited partnerships, master limited partnerships (MLPs), royalty trusts, tracking stocks, [.

With a new year right around the corner, advisors and investors should continue to prepare for an extended low-yield environment. One way of combating low returns is with the Principal Spectrum Preferred Securities Active ETF (NYSEArca: PREF).

Advisors and investors are running low on credible income-generating assets in the current environment, a scenario making the Principal Spectrum Preferred Securities Active ETF (CBOE: PREF) a standout among exchange traded funds. Rates are certainly faltering this year, but that also means yields on preferreds are declining.