We have noted heightened activity in “Low Volatility” products recently such as USMV and SPLV, and it is apparent that institutional investors and advisors still have an appetite for equities, but they would settle for less upside and less downside in embracing “lower beta” names that likely deliver reasonably appealing yields as well.
This brings us today to visit the segment of “Preferred Stocks,” which generally fit the bill in both “lower vol” and delivering appealing yields.
Currently, 6 ETF products fall within this realm, with PFF being by far the largest, and holding nearly $9 billion in assets currently. [Preferred Stock ETFs Yielding Over 6%]
Other funds in the category include PGX, PGF, PSK, IPFF, and CNPF.
PFF, PGX, and PSK are generally compared together as peers, as they both are tilted towards U.S. Domestic preferred names.