Sohel_Parvez_Haque
A few months ago, I wrote a cautious article on the Global X U.S. Preferred ETF (NYSEARCA:PFFD), arguing it was not the time to own the PFFD ETF, as interest rates were still rising and PFFD had high
PFFD: Beware Financials Exposure
Summary
- PFFD provides exposure to a broad index of preferred securities.
- PFFD has 71% exposure to financial preferreds.
- With the ongoing regional banking crisis, financial preferreds will continue to come under pressure.
- Until a comprehensive solution is found to the banking crisis, I suggest investors avoid the PFFD ETF.
Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.
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