VanEck Preferred Securities ex Financials ETF (PFXF)

Overview

The VanEck Preferred Securities ex Financials ETF (PFXF) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ICE Exchange-Listed Preferred & Hybrid Securities ex Financials Index. It invests in preferred securities, excluding those issued by financial institutions, offering exposure to a diverse range of sectors.

Reputation and Reliability

VanEck is a well-established and reputable asset manager with a long track record of providing specialized investment solutions.

Management Expertise

VanEck has a team of experienced professionals dedicated to managing its ETF offerings, with expertise in preferred securities and index tracking.

Goal

To replicate as closely as possible, before fees and expenses, the price and yield performance of the ICE Exchange-Listed Preferred & Hybrid Securities ex Financials Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to track the performance of the underlying index.

Composition The ETF holds a diversified portfolio of preferred securities issued by companies across various sectors, excluding financial institutions.

Market Share: Data unavailable.

Total Net Assets (AUM): 432400000

Key Competitors

• Global X SuperIncome Preferred ETF (SPFF)
• Virtus InfraCap U.S. Preferred Stock ETF (ICAP)

Competitive Landscape

The preferred securities ETF market is competitive, with several ETFs offering exposure to this asset class. PFXF differentiates itself by excluding preferred securities issued by financial institutions, potentially offering a different risk-return profile compared to its competitors. This exclusion can be an advantage for investors seeking reduced exposure to the financial sector, but it may also limit diversification. Other competitors may offer higher yields or different expense ratios, which could influence investor choice.

Historical Performance: Historical performance data not available in this format.

Benchmark Comparison: Benchmark comparison data not available in this format.

Expense Ratio: 0.41

Average Trading Volume

PFXF exhibits moderate liquidity with an average trading volume that facilitates relatively easy buying and selling for most investors.

Bid-Ask Spread

PFXF's bid-ask spread is generally tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and sector-specific growth prospects influence PFXF. Preferred securities, often sensitive to interest rate changes, are impacted by the prevailing market conditions. Overall market sentiment and credit spreads also play a crucial role.

Growth Trajectory

The growth trajectory of PFXF is dependent on the overall demand for preferred securities and the performance of the underlying sectors it holds. Changes to the ETF's strategy or holdings may occur to optimize performance or reflect changes in the index.

Competitive Edge

PFXF's competitive advantage lies in its exclusion of financial sector preferreds, offering investors a targeted exposure. This focused approach caters to investors wary of financial sector risks. The ETF's experienced management team and the VanEck brand also contribute to its attractiveness. Additionally, its relatively low expense ratio can be a differentiating factor.

Volatility

PFXF's volatility is influenced by the sensitivity of preferred securities to interest rate changes and credit spreads. Historical volatility can be assessed through its price fluctuations over time.

Market Risk

The primary market risk associated with PFXF stems from interest rate risk, as preferred securities are often sensitive to changes in interest rates. Credit risk is also present, as the ETF holds securities issued by various companies. Sector-specific risks of the underlying holdings can also impact performance.

Ideal Investor Profile

PFXF is suited for investors seeking income and diversification, while excluding exposure to the financial sector. It is ideal for those who understand preferred securities and are comfortable with interest rate risk.

Market Risk

PFXF is best suited for long-term investors seeking income and diversification, rather than active traders seeking short-term gains.

The VanEck Preferred Securities ex Financials ETF (PFXF) provides investors with exposure to preferred securities, excluding those issued by financial institutions. It tracks the ICE Exchange-Listed Preferred & Hybrid Securities ex Financials Index. It's suitable for long-term investors who seek income and diversification and are comfortable with moderate risk. The exclusion of financials offers a different risk-return profile compared to broad-based preferred securities ETFs.

Data Sources:

• VanEck Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.