The Global X U.S. Preferred ETF (PFFD) is an exchange-traded fund designed to provide exposure to the U.S. preferred securities market. The ETF is managed by Global X ETFs and trades under the ticker PFFD on the Nasdaq.

Classified as an income-focused ETF, the fund primarily invests in preferred stocks issued by U.S. financial institutions and other corporations. Its strategy seeks to generate income through dividends while providing diversified exposure to the preferred securities market.

The ETF follows a passive management approach and seeks to replicate the performance of the ICE BofA Diversified Core U.S. Preferred Securities Index, a benchmark composed of preferred stocks and other hybrid securities issued by U.S. companies that meet the index's eligibility criteria.

Diversification and sector exposure

PFFD provides exposure primarily associated with:

• Preferred stocks.

• Financial institutions.

• Banks.

• Insurance companies.

• Financial services.

• Utilities.

• U.S. companies.

• Hybrid securities.

The portfolio consists of preferred securities issued across multiple industries, although financial institutions typically represent a significant portion of the fund because they are among the largest issuers of preferred stock.

The ETF's performance is influenced by income-market conditions, interest-rate movements, and the credit quality of the underlying issuers.

Structure and costs

PFFD shares trade on the secondary market on the Nasdaq during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends paid by the preferred securities held in the portfolio may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Global X U.S. Preferred ETF was launched in 2017 with the objective of providing cost-efficient access to the U.S. preferred securities market through an exchange-traded structure.

Since inception, the fund has offered investors exposure to an asset class commonly used for income generation and portfolio diversification within the U.S. capital markets.

In recent years, changing interest-rate environments, credit conditions, and developments within the financial sector have continued to influence the preferred securities market represented by the ETF's portfolio.

Additional Information

Global X U.S. Preferred ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $1.86 billion.

Over the past 12 months, Global X U.S. Preferred ETF recorded a return of -5.34%, with its price trading between $16.82 and $19.60 during the same period.

The ETF is traded under the ticker PFFD.