SPFF's Portfolio Breakdown
The Global X SuperIncome™ Preferred ETF is a diversified ETF focused on preferred stocks and bonds, with 74% exposure to the financial sector and a variety of instrument types. Returns are stable but modest, with 5-year and 10-year total returns of 2.69% and 2.26%, and limited upside potential due to the fund's structure. SPFF offers steady income and lower interest rate risk, but investors should not expect significant capital appreciation or high returns.
Debunking Preferred-Stock ETFs Part 3: SPFF's Portfolio Breakdown
SPFF aims to mirror the performance of the Global X U.S. High-Yield Preferred Index, investing primarily in high-yielding U.S. preferred stocks. The fund's portfolio includes bonds (13%), preferred stocks (83%), with a focus on high yields. SPFF's expected yield is around 6%, but investors face interest rate risk. We prefer CEF preferred stocks for better risk-reward balance.
SPFF: Shrinking Value Since 2012
GlobalX SuperIncome Preferred ETF (SPFF) invests in some of the highest-yielding preferred stocks listed in the U.S. SPFF has lost about 60% in inflation-adjusted value and distribution since its inception. Moreover, it has underperformed a junk bond benchmark and shows higher risk metrics.
SPFF: The Top 50 For The Yield Hungry Investor (Who Likes Financials)
Preferred stocks offer a hybrid of stock and bond characteristics, providing a fixed and higher dividend than common stocks. Global X SuperIncome™ Preferred ETF invests in 50 high-yielding preferreds in the US, with a focus on financials. The SPFF ETF has outperformed the SPDR ICE Preferred Securities ETF and offers potential for high-yield and preferential tax treatment, but carries concentration risk in financials.
