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The index measures the performance of exchange-listed, U.S. dollar-denominated preferred securities and hybrid securities listed on the New York Stock Exchange ("NYSE") or NASDAQ Capital Market ("NASDAQ") with an option-adjusted duration of less than five years. Under normal circumstances, at least 80% of the fund’s net assets, plus borrowings for investment purposes, will be invested in preferred and income securities.
Is PFLD's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
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.
AAM Low Duration Preferred and Income Securities ETF offers a diversified portfolio of preferred and hybrid securities, focusing on low duration and stable income generation. With a 7.42% dividend yield and 0.45% expense ratio, PFLD provides attractive income for investors seeking alternatives to traditional bonds. About 50% of holdings have floating or resettable rates, making the fund resilient in rising interest rate environments and limiting duration risk.
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.
MONUMENT, Colo. , Feb. 19, 2025 /PRNewswire/ -- Advisors Asset Management (AAM), a leading investment solutions provider, announced today that its AAM Low Duration Preferred & Income Securities ETF (NYSE: PFLD) has surpassed $500 million in assets under management (AUM).
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.