(PFFD) Global X U.S. Preferred - Ratings and Ratios

The Global X U.S. Preferred ETF (NYSE ARCA: PFFD) is designed to provide exposure to the U.S. preferred securities market by investing at least 80% of its total assets in the securities of its underlying index. The fund also allocates at least 80% of its assets to preferred securities that are either domiciled in the U.S., principally traded in the U.S., or derive most of their revenue from U.S. operations. Preferred securities are hybrid instruments that combine features of both bonds and stocks, offering fixed dividend payments and prioritized claims on assets and dividends relative to common stock. The underlying index is broadly representative of the U.S. preferred securities market, covering a wide range of issuers across various sectors, with financials and utilities historically being significant contributors. This structure allows the fund to diversify across issuers and industries, balancing risk and return potential.

From a technical perspective, PFFD is currently trading at $18.83, slightly above its 20-day simple moving average (SMA) of $18.48 but below its 50-day SMA of $19.03. The 200-day SMA stands at $19.45, indicating that the fund is in a longer-term downtrend. The average true range (ATR) of 0.23 suggests relatively low volatility, with price fluctuations expected to remain modest in the near term. The funds average 20-day volume is approximately 1.11 million shares, reflecting moderate liquidity.

Fundamentally, PFFD manages assets under management (AUM) of $2.29 billion, making it a sizable player in the preferred stock ETF space. Preferred securities are sensitive to interest rate changes, and the funds performance is influenced by broader economic conditions, including Federal Reserve policy. With the Fed signaling a potential pause in rate hikes, demand for higher-yielding instruments like preferreds may increase, though rising rates could also create headwinds for the sector.