Forget Individual REITs: $14.2 Billion ETF Offers 6.4% Monthly Dividends With Lower Risk
iShares Preferred and Income Securities ETF (NYSEARCA:PFF) offers investors a 6.4% yield by investing in U.S.
PFF Vs. HYG: Preferreds Stand To Gain More Than High-Yield At This Juncture
iShares Preferred and Income Securities ETF (PFF) is favored over iShares High Yield Corporate Bond ETF (HYG) as the Fed has entered an easing cycle. PFF offers higher yield, better credit quality, and lower fees than HYG, with recent outperformance driven by expectations of falling rates and economic uncertainty. PFF's sector concentration in financials and lower diversification present risks, but Fed stress tests show banks are well-capitalized for downturns.
PFF: Complete Portfolio Review Of The Biggest Preferreds ETF
PFF is the largest preferred stock ETF, holding nearly 450 securities, offering broad diversification and a focus on income generation. The fund's portfolio is mainly preferred stocks, baby bonds, and hybrid securities, with a significant portion trading below par, presenting capital appreciation potential. PFF is suitable for investors seeking moderate risk and balanced returns, especially those looking for exposure to higher coupon instruments as rates rise.
PFF: A Bad Choice Among Preferreds, And Not Just Among Them
This is a sector that deserves active management: PFF doesn't offer that, which in my view makes it less competitive than solutions like PFFA. The returns speak for themselves: if you're selecting preferreds for yield, let's not forget they're equity-like, so why not just look at high yield? If one assumes that the callable feature provides a hedge against rising rates, performance doesn't confirm it. For hedging, there are purpose-built instruments like RISR.
7-10% Yields: These Big Dividend Income Machines Are Printing Cash Monthly
High-yielding, monthly-paying dividend machines are music to a retiree's ears. We share three that have proven to be dependable dividend payers and total return outperformers over time. One is from the infrastructure sector, one is from the real estate sector, and one is from the preferred sector.
The 3 Biggest Risks to the iShares U.S. Preferred Stock (PFF) ETF's 6% Yield
The iShares U.S. Preferred Stock ETF may appeal to yield chasers, but it's not an ideally diversified fund.
Fixed Rate Preferred Stocks Complete Review: PFF Vs. PFFA
We categorize fixed-rate preferred stocks by redemption risk, yield, and investment grade, highlighting the importance of understanding call risks and yield expectations. Preferred stocks below par with yields between 5%-10% offer varying risks, with higher yields often linked to MREITs and speculative investments. Investment-grade REIT preferred stocks and CEF preferred stocks are safer but offer lower yields, with hotel REITs providing higher yields due to market discrimination.
6%-Yielding PFF Is On Sale, But I Am Not Buying
PFF offers a 6.3% yield and diversification. It is on sale after the recent pullback. However, I am not buying it right now and in this article, I share why.
2 High-Yield Dividend ETFs to Buy to Generate Passive Income
Exchange-traded funds (ETFs) are excellent passive investment vehicles. They hold baskets of stocks or other investments, which helps provide diversification and reduce risk.
Sell/Short iShares Preferred ETF (PFF) And These Overvalued Preferred Stocks
The fixed-income market is currently very expensive and it is time to be defensive. iShares Preferred ETF is a very poor ETF that offers a great place to get insurance against a sell off in fixed-income. I will explain why. Additionally, I point out several overvalued preferred stocks (some owned by PFF and some not).
PFF: Not Attractive Given Rate Direction
Rising oil prices and strong payroll data preclude further rate cuts, negatively impacting effectively long-duration securities like PFF. PFF's high expense ratio (0.46%) makes it less attractive compared to similar, cheaper ETFs in the preferred space. Middle Eastern conflict escalation could further increase oil prices, adding downside risk to long-duration assets like PFF, as rate policy and oil prices which affect inflation are linked.
PFF: Assessing The Outlook Versus Floating Rate VRP
As interest rates, along with SOFR, are expected to decline, I've been reconsidering my holding of VRP, a variable rate preferred shares ETF. The iShares Preferred and Income Securities ETF is the largest of its kind, and holds a more traditional portfolio of preferred stock. PFF, along with other preferred share ETFs, have had a good 9 months, posting share price gains in addition to their dividend income.
