SPDR® ICE Preferred Securities ETF (PSK)

Overview

The SPDRu00ae ICE Preferred Securities ETF (PSK) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ICE Exchange-Listed Preferred & Hybrid Securities Index. The ETF invests in a broad range of U.S.-listed preferred securities and hybrid debt. It offers exposure to a diversified portfolio of preferred stocks, which typically pay fixed dividends.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable ETF provider with a long history in the financial industry.

Management Expertise

SSGA has extensive experience in managing ETFs across various asset classes, with a dedicated team focused on fixed income and preferred securities.

Goal

The fund seeks to track the investment results of an index composed of U.S. dollar-denominated preferred securities and hybrid debt.

Investment Approach and Strategy

Strategy: The ETF employs a replication strategy, aiming to hold all or substantially all of the securities in the ICE Exchange-Listed Preferred & Hybrid Securities Index.

Composition The ETF primarily holds preferred stocks, with some allocation to hybrid debt securities, issued by corporations in various sectors.

Market Share: PSK holds a significant share in the preferred securities ETF market.

Total Net Assets (AUM): 2860000000

Key Competitors

• iShares Preferred and Income Securities ETF (PFF)
• Invesco Preferred ETF (PGX)
• First Trust Preferred Securities and Income ETF (FPE)

Competitive Landscape

The preferred securities ETF market is dominated by a few large players. PSK competes primarily with PFF and PGX. PSK differentiates itself by tracking a specific index, the ICE Exchange-Listed Preferred & Hybrid Securities Index, and having slightly lower expense ratio than some competitors. A disadvantage is the lower AUM and trading volume compared to PFF, which could impact liquidity.

Historical Performance: Historical performance data should be gathered directly from financial data providers.

Benchmark Comparison: Benchmark comparison should be gathered directly from financial data providers.

Expense Ratio: 0.46

Average Trading Volume

The ETF exhibits moderate liquidity, with an average daily trading volume that facilitates relatively easy buying and selling.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting good liquidity and lower trading costs.

Market Environment Factors

Interest rate movements, credit spreads, and overall economic conditions significantly influence the performance of preferred securities. The regulatory environment for financials, as many preferred shares are issued by banks and insurance companies, also plays a role.

Growth Trajectory

Growth is tied to the issuance of new preferred securities and the overall health of the financial sector. Changes in the fund's strategy and holdings are minimal as it tracks a defined index.

Competitive Edge

PSK's competitive advantage lies in its relatively low expense ratio compared to some peers and its focus on the ICE Exchange-Listed Preferred & Hybrid Securities Index. This gives it a cost advantage. The index provides exposure to a broad array of preferred securities. This also allows PSK to give investors a well-diversified portfolio of preferred securities, mitigating risk.

Volatility

Preferred securities typically exhibit moderate volatility, influenced by interest rate sensitivity and credit risk.

Market Risk

Market risk includes interest rate risk (inverse relationship between interest rates and preferred stock prices), credit risk (risk of issuer default), and sector concentration risk (exposure to financial institutions).

Ideal Investor Profile

The ideal investor is a risk-averse investor seeking current income through dividends, with some willingness to accept moderate levels of interest rate and credit risk.

Market Risk

PSK is suitable for long-term investors seeking income and diversification within a fixed income portfolio.

The SPDRu00ae ICE Preferred Securities ETF (PSK) provides investors with exposure to a diversified portfolio of U.S.-listed preferred securities and hybrid debt, offering a consistent stream of income. PSK tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index. PSK's relatively low expense ratio and focus on a specific index can be attractive to cost-conscious investors. However, investors should be aware of interest rate sensitivity and credit risk inherent in preferred securities.

Data Sources:

• State Street Global Advisors (SSGA) website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a financial professional. Market share and performance data are subject to change.