Related: Latest ETF Launches
The portfolio managers will rely on a variety of quantitative, qualitative and relative valuation factors to select securities and weightings. They will evaluate companies for their competitive position, potential to earn high returns on capital, stability and reliability of profits, potential to generate cash in excess of growth needs and access to capital. Leverage may be used to seek enhanced portfolio beta and options strategies are used to seek enhanced current income.
“We are excited to offer PFFA because the nuances of preferred stock investing demands active management, which we can provide in an ETF form,” Hatfield said. “Investors can benefit from active management in this sector, as the call features of preferred stock often require portfolio managers to avoid capital losses on mandatory calls.”
For more information on new fund products, visit our new ETFs category.