PFFD has a 30-day SEC yield of 5.48%. Over 53% of the fund’s holdings are rated between BBB+ and BBB- while more than 38% carry ratings of between BB+ and BB-.

“Fixed-to-float and floating rate preferreds remain an important segment of the preferred market, so they should not necessarily be avoided, but investors should be cognizant of the features presented in these securities,” said Global X. “It may be more appropriate in this environment to think of this segment of the market as a complement, rather than a replacement, for the preferred part of a portfolio.”

PFFD charges just 0.23% per year, or $23 on a $10,000 investment, making it one of the least expensive preferred ETFs on the market.

For more fixed income investment solutions, visit the Fixed Income Channel.

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