PFFV

📎 Investment Objective

The Global X Variable Rate Preferred ETF (PFFV) seeks to provide investment results that correspond generally to the price and yield performance of the BofA Merrill Lynch US All Capital Securities Index, which tracks the performance of US dollar-denominated preferred and hybrid securities.

✨ Key Features

• Focuses on variable rate preferred securities, which can provide some protection against rising interest rates
• Tracks the BofA Merrill Lynch US All Capital Securities Index, a broad index of US preferred and hybrid debt securities
• Low expense ratio of 0.00%
• Relatively new fund with limited performance history

⚠️ Primary Risks

• Interest rate risk, as preferred securities are sensitive to changes in interest rates
• Credit risk, as the fund's holdings are exposed to the creditworthiness of the issuers
• Liquidity risk, as the preferred securities market can be less liquid than other fixed income markets
• Limited performance history, making it difficult to evaluate the fund's long-term track record

👤 Best For

This ETF may be suitable for investors seeking exposure to the US preferred securities market, with a focus on variable rate issues that can provide some protection against rising interest rates. However, the fund's limited performance history and the inherent risks of the preferred securities market mean it may be more appropriate for investors with a higher risk tolerance and a longer investment horizon.