AAM Low Duration Preferred and Income Securities ETF (PFLD)

Overview

The AAM Low Duration Preferred and Income Securities ETF (PFLD) seeks to provide current income while maintaining a low duration profile, primarily investing in preferred stocks and other income-generating securities.

Reputation and Reliability

AAM is known for its expertise in managing fixed-income investments, particularly preferred securities. They are generally considered a reliable issuer.

Management Expertise

AAM's management team has significant experience in fixed-income markets and preferred securities.

Goal

To provide current income while maintaining a low duration investment strategy.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but actively manages a portfolio of low-duration preferred and income securities.

Composition The ETF primarily holds preferred stocks, but may also invest in other income-generating securities like corporate bonds and hybrid securities.

Market Share: PFLD has a small market share compared to larger, more established preferred stock ETFs.

Total Net Assets (AUM): 122800000

Key Competitors

• iShares Preferred and Income Securities ETF (PFF)
• Invesco Preferred ETF (PGX)
• Global X U.S. Preferred ETF (PFFD)

Competitive Landscape

The preferred stock ETF market is dominated by a few large players like PFF and PGX. PFLD distinguishes itself with a focus on low duration, making it attractive to investors concerned about interest rate risk. However, it faces a disadvantage in terms of brand recognition and AUM compared to its larger competitors. Smaller competitors are common.

Historical Performance: Historical performance data not available without live data.

Benchmark Comparison: Benchmark comparison requires historical performance data and benchmark index information.

Expense Ratio: 0.46

Average Trading Volume

The average trading volume is moderate, potentially impacting trade execution for large orders.

Bid-Ask Spread

The bid-ask spread is typically moderate, reflecting the ETF's trading volume and underlying asset liquidity.

Market Environment Factors

Changes in interest rates, credit spreads, and the overall health of the financial sector significantly impact PFLD. Preferred stock valuations are influenced by interest rate movements and perceived credit risk.

Growth Trajectory

The growth trajectory of PFLD depends on its ability to attract investors seeking low-duration income solutions. Changes to the fund's strategy and holdings are actively managed.

Competitive Edge

PFLD's low duration focus differentiates it from many other preferred stock ETFs, offering a degree of protection against rising interest rates. This targeted approach may attract investors seeking to mitigate interest rate risk within their fixed-income allocation. The active management could provide opportunities to outperform passively managed preferred ETFs. However, smaller AUM can impact tradability.

Volatility

The volatility of PFLD is influenced by interest rate sensitivity and credit risk within the preferred stock market.

Market Risk

PFLD is susceptible to market risk factors affecting the broader preferred stock market, including interest rate fluctuations, credit spread widening, and economic downturns.

Ideal Investor Profile

PFLD is suitable for income-seeking investors who are concerned about interest rate risk and want a low-duration alternative to traditional fixed-income investments.

Market Risk

PFLD is suitable for long-term investors seeking income and willing to accept moderate risk in exchange for a higher yield than traditional bonds.

The AAM Low Duration Preferred and Income Securities ETF (PFLD) aims to deliver current income through a portfolio of low-duration preferred and income securities. Its active management approach differentiates it from passive index-tracking competitors. It's a relatively small fund, and its low duration focus caters to investors concerned about rising interest rates. It primarily suits income-seeking investors with moderate risk tolerance, especially those prioritizing capital preservation in a rising rate environment.

Data Sources:

• ETF.com
• Morningstar
• Company Fact Sheet

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.