PFFA: Not All Preferred ETFs Are Built Alike

Summary

• One underappreciated benefit of preferreds is how well they can fit inside an exchange-traded fund.
• PFFA prioritizes yield and total return, using an actively managed strategy tailored to the complexities of the preferred space.
• Over numerous time horizons, PFFA has consistently outpaced the S&P U.S. Preferred Stock Index and its Morningstar peer category average.

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Preferred shares occupy a unique space in the capital structure; technically equity, but with bond-like features such as fixed dividends and seniority over common stock in the event of liquidation.

They typically don’t have voting rights, and their prices