Less than two months removed from the Federal Reserve's first interest rate hike in nearly a decade, volatile global equity markets have renewed investors' enthusiasm for rate-sensitive asset classes.
That theme explains why five of this year's top 10 asset-gathering exchange-traded funds are fixed income funds and one of the other five is the Utilities SPDR (ETF) (NYSE: XLU). Although investors have pulled $62 million from the iShares S&P U.S. Pref Stock Idx Fnd (ETF) (NYSE: PFF) since the start of the year, the time could be right for investors to consider PFF and rival preferred stock ETFs.
Sensitivity to rising rates comes by way of a bond's duration; the longer the duration, the more sensitive it is to fluctuations in interest rates.
Preferred Stocks
A preferred stock is ...
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