Summary
PFXF Chart
PFXF: Know What You Are Buying -- These Are Not Your Father's Preferred Shares
More than 50% of PFXF's assets are Mandatorily Convertible. They are effectively a bet on the common shares of the issuer without full upside. Many now trade at a substantial premium, and downside protection is limited at these levels. Income investors should be aware that dividends of the underlying assets are PIKable.
PFXF's 6.6% Yield Still Looks Safe as it Skips Banking Sector's Biggest Dividend Risks
VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) has drawn income investors with its monthly distributions and a structure that deliberately sidesteps the banking sector.
This Preferred ETF Deserves Preferential Treatment
Many investors are looking to reduce equity volatility while adding more non-Treasury income to their portfolios. In this environment, preferred stocks and the related ETFs may be valid considerations.
VanEck Preferred Securities ex Financials ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 39,506 | $698,294.15 | $699,058.67 | $764.52 | 0.11% |
 Jeff Ameen Spire Wealth Management | 2 | $35.08 | $35.48 | $0.4 | 1.14% |
 John Mezzasalma Mezzasalma Advisors LLC | 14,085 | $248,741.1 | $249,093.22 | $352.12 | 0.14% |
| AWM Accurate Wealth Management LLC Accurate Wealth Management LLC | 27,515 | $490,867.6 | $488,116.1 | -$2,751.5 | -0.56% |
 Alexander Eichhorn Tanager Wealth Management LLP | 1.59M | $27.96M | $28.16M | $194,201.72 | 0.69% |
VanEck Preferred Securities ex Financials ETF (PFXF) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has VanEck Preferred Securities ex Financials ETF ever had a stock split?
VanEck Preferred Securities ex Financials ETF Profile
| ARCA Exchange | US Country |
Overview
This fund is designed for investors looking to capitalize on the opportunities presented by hybrid debt, preferred stock, and convertible preferred stock within the U.S. market. By investing primarily in these financial instruments, the fund aims to provide a balanced approach to income generation and capital appreciation. The unique focus on non-financial corporations allows it to target securities that might offer different risk and return characteristics compared to those issued by financial institutions. With at least 80% of its total assets committed to securities that make up its benchmark index, the fund strives for closely aligned performance with the said index, ensuring that its objectives closely match the investment opportunities it aims to capture. Despite being non-diversified, the fund's strategy is to concentrate its investments in a way that positions it to take advantage of specific opportunities within its target market.
Products and Services
- Hybrid Debt Securities
Hybrid debt securities combine elements of both debt and equity, offering the potential for regular income through fixed interest payments and the possibility of capital appreciation. These instruments can provide a means of diversification within an investor's portfolio, potentially offsetting risks associated with more traditional investments.
- Preferred Stock
Preferred stock represents ownership in a company but typically does not come with the same voting rights as common stock. It offers a fixed dividend, which can make it an attractive option for investors looking for steady income. The dividends for preferred stocks are generally prioritized over those of common stock, making them a relatively safer investment during economic downturns.
- Convertible Preferred Stock
This type of preferred stock provides investors with the option to convert their preferred shares into a predetermined number of common shares, usually after a specified date. The dual nature of convertible preferred stock allows for income through dividends and the opportunity for capital growth, making it a flexible investment tool within the broader market.
