Global X Variable Rate Preferred ETF company info

What does Global X Variable Rate Preferred ETF do?
Global X Variable Rate Preferred ETF (NYSEARCA:PFFV) focuses on providing investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE Variable Rate Preferred & Hybrid Securities Index. This exchange-traded fund (ETF) primarily invests in a diverse range of U.S. and non-U.S. companies, aiming to offer investors variable rate preferred stocks, which can be less sensitive to interest rate changes compared to fixed rate securities. The objective is to provide income and, to a lesser extent, capital appreciation through its investments. PFFV seeks to serve investors looking for potential high-income yields from preferred securities with the added benefit of rate adjustments. The fund operates exclusively on the NYSE Arca, targeting those who wish to diversify their portfolios with variable rate instruments.
Global X Variable Rate Preferred ETF company media
Company Snapshot

Is Global X Variable Rate Preferred ETF a public or private company?

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Ownership
Public

How many people does Global X Variable Rate Preferred ETF employ?

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Employees
212

What sector is Global X Variable Rate Preferred ETF in?

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Sector
ETF

Where is the head office for Global X Variable Rate Preferred ETF?

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Head Office
New York, United States

What year was Global X Variable Rate Preferred ETF founded?

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Year Founded
2020
What does Global X Variable Rate Preferred ETF specialise in?
/Preferred Shares /Variable Rate /Investment Management /Risk Diversification /Dividend Payment /Market Exposure

What are the products and/or services of Global X Variable Rate Preferred ETF?

Overview of Global X Variable Rate Preferred ETF offerings
Focus on Variable Rate Preferred Stocks: PFFV invests in a basket of U.S. variable rate preferred stocks. These securities are a hybrid between common stocks and bonds, offering some features of both. They typically pay regular dividends, but the dividend rate can adjust periodically based on prevailing interest rates.
Potential for Income with Less Interest Rate Risk: Compared to traditional fixed-rate preferred stocks, variable rate preferred stocks offer potentially steadier dividends if interest rates rise. This is because the dividend resets higher along with rising interest rates. This can be beneficial for investors seeking income generation in a rising rate environment.
Potential for Capital Appreciation: While income generation is a primary focus, PFFV also offers the potential for capital appreciation if the market value of the underlying variable rate preferred stocks increases. This can happen due to various factors like a strong demand for income-generating securities or improvements in the creditworthiness of the issuing companies.
Diversification Within Preferred Stocks: By holding a basket of variable rate preferred stocks from various issuers, PFFV offers diversification within this asset class, reducing concentration risk on any single company.
Lower Volatility Potential Than Common Stocks (Generally): Preferred stocks, including variable rate ones, generally experience lower volatility than common stocks. This is because they have a higher claim on a company's assets in case of liquidation, and they typically receive dividend payments before common stockholders. However, they may still be more volatile than high-quality bonds.