PGF's Portfolio Review

(7min)

Summary

  • PGF offers diversified exposure to financial sector preferred stocks, with 90% fixed-rate holdings and a focus on investment-grade credit quality (average Baa3 rating).
  • The fund's portfolio is mainly composed of 71% fixed-rate preferreds trading below par, providing a yield to worst of 6.50% and attractive entry points.
  • Resettable and fixed-to-floating rate preferreds add yield and interest rate risk diversification, though they represent a smaller portion of the portfolio.
  • PGF's current yield profile and credit quality make it a solid choice for income-focused investors seeking exposure to financial preferreds with moderate risk.

Strategy of diversified investment.

tadamichi

Co-authored by Strategic Yield.

Today's article is about the Invesco Financial Preferred ETF (NYSEARCA:PGF) portfolio. The fund invests primarily in the financial sector and traditional preferred stocks, with 90% of its holdings being fixed-rate. You can find more information about the

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Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

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