PFF has been around since 2007, and is often found as a core component in many ETF model portfolios where portfolio managers are looking for yield, but not willing to embrace the risk that comes with say High Yield Corporate Bonds, or Emerging Market Bonds, or individual common stocks for example.
When we break down the actual portfolio from an index standpoint that PFF tracks we see preferred stock holdings that look like the following: 1) Actavis PLC (2.85%), 2) HSBC Holdings (2.28%), 3) GMAC Capital (1.60%), 4) Barclays Bank (1.58%) and 5) Wells Fargo & Company (1.45%).
iShares U.S. Preferred Stock ETF
