PFFD: Shrinking Value And Distribution

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YinYang PFFD strategy and portfolio Global X U.S. Preferred ETF (NYSEARCA:PFFD) started investing operations on 09/11/2017 and tracks the ICE BofA Diversified Core U.S. Preferred Securities Index. It ...

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It ...</p>\n\n<a href=\"https://seekingalpha.com/article/4719164-pffd-shrinking-value-distribution\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PFF","symbol_name":"优先股指数ETF-iShares S&P","start_time":0,"source_url":"https://seekingalpha.com/article/4719164-pffd-shrinking-value-distribution","article_id":"2465543248","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/174672992/image_174672992.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2465543248","pubTimestamp":1725529963,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"YinYang PFFD strategy and portfolio Global X U.S. Preferred ETF (NYSEARCA:PFFD) started investing operations on 09/11/2017 and tracks the ICE BofA Diversified Core U.S. Preferred Securities Index. It ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PFF":"优先股指数ETF-iShares S&P","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","PFXF":"VanEck Preferred Securities ex Financials ETF","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","BK4581":"高盛持仓","PFFD":"Global X U.S. Preferred ETF","BK4504":"桥水持仓","PGX.AU":"Primero","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0106831901.USD":"贝莱德世界金融基金A2","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","PGX":"优先股指数ETF-PowerShares","BK4127":"投资银行业与经纪业","LU0267386448.USD":"FIDELITY FIRST ALL COUNTRY WORLD \"A\" (USD) INC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0971096721.USD":"富达环球金融服务 A","LU1548497426.USD":"安联环球人工智能AT Acc","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","FDN":"First Trust Dow Jones Internet I","FPE":"First Trust Preferred Securities and Income ETF","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","BK4534":"瑞士信贷持仓","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4585":"ETF&股票定投概念","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","HYG":"债券指数ETF-iShares iBoxx高收益公司债","BK4588":"碎股","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","BK4550":"红杉资本持仓","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H"},"translate_title":"PFFD：价值和分布萎缩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PFF":1,"PFFD":1,"PFXF":1,"PGX":1,"PGX.AU":1,"FPE":1,"HYG":1,"FDN":0.9,"US3Y.BOND":0.83,"US10Y.BOND":0.83,"US12M.BOND":0.83,"US2Y.BOND":0.83,"US30Y.BOND":0.83,"US5Y.BOND":0.83,"US6M.BOND":0.83,"US7Y.BOND":0.83,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"YinYang PFFD strategy and portfolio Global X U.S. Preferred ETF (NYSEARCA:PFFD) started investing operations on 09/11/2017 and tracks the ICE BofA Diversified Core U.S. Preferred Securities Index. It has 211 holdings, a 30-day SEC yield of 6.20% and a total expense ratio of 0.23%. Distributions are paid monthly. As described in the prospectus by Global X, The Underlying Index is designed to track the broad-based performance of the U.S. preferred securities market. The Underlying Index includes different categories of preferred stock, such as floating, variable and fixed-rate preferreds, cumulative and non-cumulative preferreds, and trust preferreds. Constituents must meet minimum amount, price, liquidity, maturity and other requirements. The index is weighted based on market capitalization, with a limit of 10% for any issuer. Preferred stocks have priority over common stocks in the payment of dividends and proceeds of liquidation, but are generally junior to debt and do not carry voting rights. They are considered hybrid assets and their price behavior is between stocks and bonds. The portfolio turnover rate in the most recent fiscal year was 37%. The fund is quite concentrated. The top 10 issuers, listed in the next table, represent 48.7% of asset value. Each of them has several securities in PFFD portfolio. The top 4 names are large banks, weighing more than 6% individually and 31.9% in aggregate. Risks related to other individual companies are moderate.   Common stock Name Weight % EPS growth %TTM PE TTM PE fwd   BAC $Bank of America Corp(BAC-N)$. 10 -18.14 14.31 12.51   WFC Wells Fargo & Co. 8.33 21.57 11.98 11.50   JPM JPMorgan Chase & Co. 7.48 15.32 12.29 12.41   MS Morgan Stanley 6.06 7.04 16.34 14.16   T AT&T, Inc. 3.84 233.27 11.74 9.27   OTCPK:ATHOF Athabasca Oil Corp 2.78         USB U.S. Bancorp 2.69 -12.45 14.72 12.32   PSA $Public Storage(PSA-N)$ 2.67 -53.75 31.99 32.93   COF $Capital One Financial Corp(COF-N)$. 2.58 -18.60 13.70 11.25   C Citigroup, Inc. 2.22 -43.17 17.16 10.79   Click to enlarge Performance Since inception in September 2017, PFFD share has lost 19% in value, as reported on the next chart. The cumulative inflation was about 27% in the same time, based on CPI. It represents a large loss for shareholders, especially in inflation-adjusted value.   PFFD share price return (Seeking Alpha) Distribution is slowly trending down, excepting an outlier in 2019 (next chart). The annual sum of distributions decreased from $1.40 per share in 2018 to $1.26 in 2023. For shareholders, it represents a 10% loss of income stream in 5 years, while the cumulative inflation was about 22%.   PFFD distribution history (Seeking Alpha) Since 10/1/2017, PFFD has underperformed a high-yield bond benchmark, represented by iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The gap in annualized return is about 1.1%, and the preferred stocks ETF also shows a significantly higher risk measured in volatility and maximum drawdown. PFFD offers a bond-like return with a stock-like risk: the worst of both worlds.     Total Return Annual Return Drawdown Sharpe ratio Volatility   PFFD 19.75% 2.64% -30.93% 0.09 11.58%   HYG 7.43% 3.56% -22.03% 0.19 8.60%   Click to enlarge PFFD vs competitors The next table compares characteristics of PFFD and four of the largest preferred stocks ETFs:  iShares Preferred and Income Securities ETF (PFF) First Trust Preferred Securities and Income ETF (FPE) Invesco Preferred ETF (PGX) VanEck Preferred Securities ex Financials ETF (PFXF)      PFFD PFF FPE PGX PFXF   Inception 09/11/2017 3/26/2007 2/11/2013 1/31/2008 7/16/2012   Expense Ratio 0.23% 0.46% 0.84% 0.50% 0.41%   AUM 2.41B $14.77B $5.46B $4.37B $1.82B   Avg Daily Volume 10.68M $110.36M $17.46M $37.81M $9.13M   Yield TTM 6.24% 6.20% 5.56% 5.86% 7.21%   Div. Growth 5 Yr -10.42% -0.75% -2.09% -2.83% 4.08%   Click to enlarge PFFD has the cheapest fee of this list and the second-highest yield. However, it shows the worst 5-year dividend growth rate. The next chart plots total returns, starting on 9/12/2017. PFFD is second to last, only ahead of PGX.   PFFD vs. Competitors, total return since 9/12/2017 (Seeking Alpha) Anyway, none of these funds looks attractive: their share prices lost between 12% and 21% in this time frame.   PFFD vs. Competitors, price return since 9/12/2017 (Seeking Alpha) PFFD is in the middle of the pack over the last 12 months:   PFFD vs. Competitors, 12-month total return (Seeking Alpha) Takeaway Global X U.S. Preferred ETF tracks an index including U.S. preferred stocks of all kinds. PFFD is quite concentrated in the top issuers, especially large banks. PFFD performance is underwhelming: it shows a significant decay in both value and distribution. Performance metrics point to a bond-like return with a stock-like risk. Moreover, it has underperformed a high-yield bond benchmark and 3 of the largest preferred stocks ETFs.  Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2465543248"}