PREF: Preferred ETF With Low Volatility, Average Return And A Lot Of Banks
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The Principal Spectrum Preferred Securities Active ETF (PREF) is an income-oriented ETF focusing on preferred securities from financial companies. Despite offering low volatility, the ETF has struggled with total returns that barely keep pace with inflation, and long-term shareholders have experienced declining capital and income. Comparative analysis suggests alternative ETFs like VRP and PFXF might offer more attractive investment opportunities.
March 24, 2025 | 9:45 pm
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ETF demonstrates low volatility but struggles with total returns and income generation, potentially signaling challenges for investors.
The article directly critiques PREF's performance, highlighting its inability to generate strong returns and maintain capital value. Low yield and underperformance compared to peers suggest potential downward pressure on the ETF's price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100