(PFLD) AAM Low Duration Preferred - Ratings and Ratios

The AAM Low Duration Preferred and Income Securities ETF (NYSE ARCA: PFLD) is designed to track the performance of a portfolio of U.S. dollar-denominated preferred and hybrid securities listed on the NYSE or NASDAQ. These securities are selected based on their option-adjusted duration of less than five years, targeting income generation with reduced interest rate sensitivity. The fund typically invests at least 80% of its net assets in these preferred and income securities, with the remainder allocated to related instruments or cash equivalents. Preferred securities often combine features of both bonds and equities, offering regular income with a higher claim on assets than common stock but lower than traditional bonds. This structure makes them appealing for investors seeking stable income with lower volatility compared to equities.

As of the latest data, PFLD has an average trading volume of 228,278 shares over the past 20 days, with a last price of $20.74. Its short-term moving averages (SMA 20: $20.67, SMA 50: $20.57) indicate recent price stability, while the SMA 200 ($20.47) suggests a slightly upward trend over the longer term. The Average True Range (ATR) of 0.12 reflects low volatility, consistent with the funds focus on income over capital appreciation. With assets under management (AUM) of $502.42 million, PFLD is a moderately sized ETF in its category, offering diversification across a range of preferred and hybrid securities issued by U.S. corporations.

3-Month Forecast: Based on the current technical and fundamental data, PFLD is expected to maintain its stable price range with minimal volatility. The SMA 20 and SMA 50 are converging, suggesting limited upside but also downside protection. The ATR of 0.12 indicates that price fluctuations will remain subdued, with potential trading within a $20.50 to $21.00 range. Fundamentally, the consistent demand for low-duration income securities and the funds established AUM support its ability to maintain current levels of performance. No significant changes in net assets or pricing trends are anticipated in the near term.