Areas of Value That ETF Investors Should Look Into

Maier also argued that income remains a prominent theme with investors as many will have to adapt to the changing market environment.

“I think there’s a lot of value in income oriented stocks,” Maier said.

“We are seeing flows into some of our products like preferreds – PFFD, yielding, you know, in the five-and-a-half percent range,” he added.

Preferred stocks are a type of hybrid security that show bond- and equity-like characteristics. The shares are issued by financial institutions, utilities and telecom companies, among others. Within the securities hierarchy, preferreds are senior to common stocks but junior to corporate bonds. Additionally, preferred stocks issue dividends on a regular basis, but investors don’t usually enjoy capital appreciation on par with common shares.

The Global X U.S. Preferred ETF (Cboe: PFFD) features floating, variable and fixed-rate preferreds, which can help investors endure higher interest rates. PFFD shwos a 5.88% 30-day SEC yield.

For more market-related commentary from Tom Lydon and other industry experts, visit our ETF Trends video category.