Principal Spectrum Preferred Securities Active ETF (PREF)
ARCA ARCA Primary 
PREF: Preferred ETF With Low Volatility, Average Return And A Lot Of Banks
Principal Spectrum Preferred Securities Active ETF is an income-oriented ETF focusing on preferred securities, primarily from financial companies. The total return of PREF keeps pace with inflation, but long-term shareholders have seen both their capital and income going down. PREF has lower volatility compared to peers but lags in yield, total return, and risk-adjusted performance, making VRP and PFXF more attractive.
PREF: Active Preferred Equity Fund That Does Not Impress
PREF is an actively managed ETF investing at least 80% in preferred securities, primarily from financial institutions, with 91% of assets rated BBB. The fund is heavily concentrated in the financial sector, with 55% exposure to banks and 16% to insurance, posing risks during banking crises. PREF has not consistently outperformed its passive peer, PFF, despite active management, raising questions about its value proposition.
