PRFD

📎 Investment Objective

The PIMCO Preferred and Capital Securities Active Exchange-Traded Fund (PRFD) seeks to provide current income and capital appreciation by investing primarily in preferred and other capital securities.

✨ Key Features

• Actively managed portfolio of preferred and other capital securities
• Emphasis on generating high current income
• Potential for capital appreciation alongside income generation
• Diversified exposure across different preferred and capital security issuers

⚠️ Primary Risks

• Interest rate risk: Preferred and capital securities are sensitive to changes in interest rates, which can impact their prices and yields
• Credit risk: The fund is exposed to the creditworthiness of the issuers of the preferred and capital securities it holds
• Liquidity risk: Preferred and capital securities may have lower trading volumes, which can impact the fund's ability to buy and sell positions
• Active management risk: The success of the fund's active management strategy is dependent on the portfolio managers' ability to identify and capitalize on attractive investment opportunities

👤 Best For

The PIMCO Preferred and Capital Securities Active ETF may be suitable for investors seeking a high level of current income and the potential for capital appreciation, and who have a moderate to high risk tolerance. Investors should be comfortable with the fund's active management approach and the risks associated with preferred and capital securities.