(PFF) Preferred Income Securities - Overview
ETF Category: Preferred Stock | Exchange: NASDAQ (USA) | Market Cap: 13.964m USD | Total Return: 8.1% in 12m
TER: 0.46%
Avg Turnover: 74.0M
Warnings
Choppy
Tailwinds
No distinct edge detected
The iShares Preferred and Income Securities ETF (PFF) tracks an index composed of U.S. preferred stocks, maintaining at least 80% of its assets in underlying index components. The fund retains flexibility to allocate up to 20% of its portfolio to derivatives, including futures, options, and swap contracts, as well as cash equivalents to manage liquidity and tracking error.
Preferred securities function as hybrid instruments, occupying a position in the capital structure between common equity and senior debt. This asset class typically offers higher yields than common dividends but maintains lower priority than bonds during corporate liquidations. The sector is heavily weighted toward financial institutions, as banks often issue preferred shares to meet Tier 1 capital requirements without diluting common shareholder voting rights.
Investors can further evaluate these yield characteristics and credit risks by exploring the analytical tools available on ValueRay.
- Federal Reserve interest rate pivots impact underlying preferred stock valuations
- Financial sector stability dictates credit spreads for major banking holdings
- Corporate tax policy changes influence after-tax yields for institutional investors
- Dividend payment consistency from financial issuers drives fund distribution levels
- Narrowing credit spreads enhance net asset value through capital appreciation
Over the past week, the price has changed by -1.54%, over one month by -0.29%, over three months by -0.88% and over the past year by +8.07%.
| Analysts Target Price | - | - |