AAM Low Duration Preferred and Income Securities ETF (PFLD)
ARCA ARCA Primary Summary
PFLD Chart
PFLD's Portfolio Breakdown: Exposure To Varied Interest Rate Scenarios
AAM Low Duration Preferred and Income Securities ETF offers a 7.36% dividend yield, balancing income with moderate risk through a diversified portfolio of preferred securities and baby bonds. The PFLD fund's holdings include fixed-rate, fixed-to-floating, resettable preferreds, and baby bonds, providing exposure to varied interest rate scenarios. With a 0.45% expense ratio, PFLD is suitable for investors seeking steady income and moderate risk in a changing rate environment.
Debunking Preferred Stock ETFs Part 6. PFLD's Portfolio Breakdown
PFLD ETF tracks the ICE 0-5 Year Duration Exchange-Listed Preferred & Hybrid Securities Index, focusing on preferred stocks with $500M in assets and a 0.45% expense ratio. The fund's portfolio includes 17% bonds and 83% preferred stocks, with detailed breakdowns of their yields, call dates, and trading statuses. Preferred stocks are categorized into cumulative, non-cumulative, floating, and resettable rates, with specific yield metrics and maturity dates provided for each type.
PFLD: With Spreads Tight, This Preferred Equity ETF Is No Longer Attractive (Rating Downgrade)
While PFLD has delivered positive returns since the previous "Buy" rating, primarily driven by its dividend yield, the current market conditions warrant a more cautious approach. PFLD markets itself as having a low duration portfolio (1.28 years), making it less sensitive to interest rate changes. However, the analysis argues that this claim is debatable. When compared to the iShares Preferred and Income Securities ETF, PFLD's performance is highly correlated, suggesting that its actual duration is likely longer than advertised.
AAM Low Duration Preferred and Income Securities ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
 Kimberly Cappellano Private Wealth Asset Management LLC | 3,059 | $59,222 | $59,986.99 | $764.99 | 1.29% |
| KMT Kirk M. Tokheim Ameritas Advisory Services LLC | 23,151 | $477,679.99 | $453,991.11 | -$23,688.88 | -4.96% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 100 | $2,102 | $1,962 | -$140 | -6.66% |
| WTM W. Travis McKinney HB Wealth Management LLC | 37,228 | $733,391.6 | $730,041.08 | -$3,350.52 | -0.46% |
 Amanda Hawley Atria Wealth Solutions Inc. | 15,903 | $321,240.6 | $312,096.37 | -$9,144.23 | -2.85% |
AAM Low Duration Preferred and Income Securities ETF (PFLD) FAQ
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AAM Low Duration Preferred and Income Securities ETF Profile
| ARCA Exchange | US Country |
Overview
The described entity is a financial instrument focusing on short-term, high-grade, preferred, and hybrid securities. Its primary criteria for investments are securities that are exchange-listed, U.S. dollar-denominated, and have an option-adjusted duration of less than five years. This focus is aimed at minimizing interest rate risk while seeking returns through dividends and income typically associated with preferred and hybrid securities. The entity is concentrated on securities listed on two of the largest exchanges in the United States, the New York Stock Exchange (NYSE) and the NASDAQ Capital Market (NASDAQ), ensuring liquidity and accessibility for investors. This commitment to investing at least 80% of its net assets, plus any borrowings, in preferred and income securities indicates a targeted approach to generating income for its stakeholders. The careful selection of preferred and hybrid securities with a controlled duration exemplifies a strategized balance between yield and risk, tailored for investors looking for income-generating investments within a specific risk tolerance.
Products and Services
- Preferred Securities Investment
- Hybrid Securities Investment
- Short-Duration Strategy
- Income Securities Focused on U.S. Dollar-Denominated Assets
This service involves the investment in preferred securities, a type of stock that typically offers dividends to shareholders before common stock dividends are issued and can have fixed or variable dividend payments. Preferred securities can provide investors with a steady income stream and have priority over common stock in the event of a bankruptcy.
Hybrid securities combine elements of both debt and equity, offering the potential for regular income through fixed or floating interest rates and the possibility of capital gains akin to equity investments. This service focuses on investing in hybrid securities to diversify the portfolio’s income sources and potentially balance the risk-return profile.
The emphasis on securities with an option-adjusted duration of less than five years is aimed at minimizing interest rate risks, an important consideration for income-focused investments. This strategy is particularly appealing to investors seeking to mitigate the impact of rising interest rates on their portfolio’s value.
Investing primarily in U.S. dollar-denominated assets reduces currency risk for U.S. investors and offers a level of stability in income generation. This focus on U.S. dollar assets caters to investors looking for less exposure to the volatility associated with foreign exchange rates.
