Fixed Income: U.S. - Corporate, Preferred
With 7 ETFs and over $33.85B in combined AUM, the Fixed Income: U.S. - Corporate, Preferred segment provides exposure to the U.S. space with a focus on Broad Credit securities.
Year-to-date, the best-performing ETF in the segment is the VanEck Vectors Preferred Securities ex Financials ETF (PFXF), with a total return of 6.91%. Meanwhile, the most popular ETF is the iShares Preferred and Income Securities ETF (PFF) with $19.83BB in assets under management.
Investors should take a look at the iShares Preferred and Income Securities ETF (PFF). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. PFF tracks an index of preferred stock traded on the NYSE and NASDAQ. Securities are selected by rules-based, proprietary methods and weighted by market value. PFF has an expense ratio of 0.46% and tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index.
ETF.com Efficiency Insight
The average efficiency score in the Fixed Income: U.S. - Corporate, Preferred segment is 76 out of 100, with the SPDR ICE Preferred Securities ETF(PSK) obtaining the highest rating of 84 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.45% per year, with the Global X U.S. Preferred ETF (PFFD) having the lowest expense ratio, charging investors 0.23% yearly.
Investors should look for funds with tight tracking, such as the SPDR ICE Preferred Securities ETF (PSK), with a 12-month median tracking difference of -0.35%.
ETF.com Tradability Insight
The average tradability score in the Fixed Income: U.S. - Corporate, Preferred segment is 91 out of 100, with the iShares Preferred and Income Securities ETF(PFF) obtaining the highest rating of 97 out of 100.
The iShares Preferred and Income Securities ETF (PFF) is the undisputed segment leader when it comes to liquidity. The fund trades 114.56M in daily average volume. Investors should also find ample liquidity in the Invesco Preferred ETF (PGX), with $35.20M in daily dollar volume.
Use limit orders to trade funds such as the InfraCap REIT Preferred ETF(PFFR), due to their double-digit market spreads.
ETF.com Fit Insight
The S&P U.S. Preferred Stock Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to . This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, follows a strategy and obtains a low Fit score compared with our neutral benchmark.