PFFD offers inclusive coverage of US preferred stocks, with respect to both company size and issue characteristics (e.g., fixed vs. floating rate). Securities are selected and weighted by the market value of the preferred stock issue, plus any accrued interest. Exposure to individual issuers is capped at 10%. PFFD is, without question, vanilla exposure to the space. What makes the fund noteworthy is its cheap fee in comparison to competitors. PFFD could be very attractive to buy-and-hold investors, though more established rivals (such as iShares’ PFF) may be cheaper to trade.
Roman78 (Roman) #1