VanEck Pref Secs ex Fincls ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy earns it an Above Average Process Pillar rating. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage. VanEck Pref Secs ex Fincls ETF earns an Above Average Process Pillar rating.    The most significant contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Noteworthy risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the ICE Exchange-Listed Fixed & Adjustable Rate Non-Financial Preferred Securities Index (the "Preferred Securities Index").  The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index is comprised of U.S. exchange-listed hybrid debt, and preferred stock and convertible preferred stock issued by non-financial corporations. The fund is non-diversified.

 This strategy's 12-month yield is 7.9%, higher than its average peer's 5.9%. Plus, its 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return) sits at 6.9%. While a higher yield may deliver more income, it also tends to indicate higher credit risk.

Above Average

Process

VanEck’s team is good but unexceptional, earning the strategy an Average People Pillar rating. The fund takes a solo manager approach, with Peter Liao as the only listed manager at the helm, who brings 18 years of portfolio management experience to the table. They manage a total of 24 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Preferred Securities ex Financials ETF

PFXF tracks an index comprised of USD denominated preferred securities and securities that the index provider deems to be functionally equivalent. Securities issued by financial firms are excluded.

Preferred stocks and the related exchange traded funds have long been favored assets of income-hungry investors, but there are some rubs with preferreds. First, these hybrid securities are rate-sensitive — a trait that worked against preferreds last year, but could turn positive when the Federal Reserve shows signs of halting its tightening regime.

Get Preferred Income Without Bank Worries in This ETF

Volatility in financials may persist due to lingering banking crisis concerns. Investors can avoid this by considering preferred securities not issued by financial companies. Preferred securities are one area of the market that investors should be mindful of as they are known for significant financial sector concentration, particularly in banks.

PFXF: Preferreds Without Bank Sector Exposure

Following a savage repudiation of the asset class last year amid seven interest rate hikes by the Federal Reserve, preferred stocks and the relevant exchange traded funds are on the mend in 2023. That includes the VanEck Preferred Securities ex Financials ETF (PFXF), which entered Thursday with a 9.

Preferred Stock Rebound Pushing PFXF Higher

iShares Preferred and Income Securities ETF 

The iShares Preferred and Income Securities ETF (PFF) is one of the largest full index-based Preferred stock ETFs. The VanEck Vectors Preferred Securities ex Financials ETF (PFXF) is like most Preferred stock ETFs, except it excludes the largest sector in that universe: Financial issuers.

PFF Vs. PFXF: Avoiding Financials Has Worked

Amid expectations that a less aggressive tenor of interest rate increases will arrive in 2023, some market observers are looking at high-yield asset classes that stumbled this year amid seven interest rate increases by the Federal Reserve.

PFXF: Preferred ETF with Perks

Count preferred stocks as among the high-yield asset classes dealing with 2022 headwinds attributable to seven interest rate hikes by the Federal Reserve.

Preferred ETF Could Be Positioned for 2023 Resurgence

Owing to the bond-like characteristics of preferred stocks and the related exchange traded funds, those assets are faltering this year amid rising interest rates, but some green shoots may be emerging.

PFXF Powerful Source of Income

Preferred stocks and exchange traded funds certainly fit the bill as high income assets. That's a positive when interest rates are declining or low, but the opposite is true in rising-rate environments.

After Drubbing, Preferred Stocks, These VanEck ETFs Look Interesting

Preferred stocks and the related exchange traded funds are enduring some punishment this year at the hands of the Federal Reserve's efforts to quash inflation via a series of aggressive interest rate increases. Those are the breaks for rate-sensitive asset classes and ETFs such as the VanEck Preferred Securities ex Financials ETF (PFXF).

PFXF Could Be Potent Play on Possible Preferreds Rebound

Preferred stock ETF with a 5.74% dividend yield and 0.4% expense ratio. PFXF is unique in that it does not hold preferred shares of financial companies.

Inflation And Credit Risks Make PFXF A Hold

InfraCap REIT Preferred ETF

Preferred stocks typically aren't first, second or even third to mind when investors think about what they want to include in their portfolios. But if you're an income hunter and you don't already have these stocks on their radar, you might want to give preferreds – and specifically, preferred stock ETFs – a look.

3 Preferred Stock ETFs for High, Stable Dividends

VanEck Fallen Angel High Yield Bond ETF

AdvisorShares Peritus High Yield ETF

Invesco PureBeta 0-5 Yr US TIPS ETF

ProShares Inflation Expectations ETF

Sound Enhanced Fixed Income ETF

iShares 0-5 Year TIPS Bond ETF

VanEck CEF Municipal Income ETF 

In a terrible year for the asset class, not every fixed income ETF is down.

Best Performing Fixed Income ETFs Of The Year

Preferred stocks and the related exchange traded funds are among income investors' favorite destinations when interest rates are declining. Obviously, the opposite is happening today, and with the April reading of the Consumer Price Index (CPI) checking in at 8.3% — barely beneath the 8.5% reading seen in March — the Federal Reserve could be [.

There's Potential in Unique Preferred Stock ETF

Preferred stocks and the related exchange traded funds are considered high-yield assets and as such, there's some vulnerability to rising interest rates. But while the Federal Reserve is boosting rates, the fact is yields on government debt remain paltry, compelling investors to consider preferred stocks, which display both equity and fixed income properties.

A Potentially Potent Preferred Stock ETF

Invesco Preferred ETF

Preferred stock offers higher yield and less volatility than common stock. Here's what you need to know, especially about preferred stock ETFs.

Why Not Consider Preferred Stocks? Check Out These 3 Stock ETFs Right Now

I had assigned a bullish rating to VanEck Vectors Preferred Securities ex Financials ETF in November 2020. Since then, its price has appreciated by 7.5% – plus, investors also made another 5.6% (TTM dividend yield).

PFXF ETF: A Steady Bet For Income Seekers - For Now

Preferred stock ETF with a 5% dividend yield and 0.4% expense ratio.

PFXF: Time To Add Some Preferred Stock

Global X SuperIncome Preferred ETF

If you're looking for steady income, consider these preferred stock ETFs The post 3 Preferred Stock ETFs to Buy for October appeared first on InvestorPlace. More From InvestorPlace Stock Prodigy Who Found NIO at $2… Says Buy THIS Now Analyst Who Found Microsoft at $0.38 Names #1 Pick for the AI Boom America's #1 EV Stock Still Flying Under the Radar

3 Preferred Stock ETFs to Buy for October

Thanks in large part to low interest rates and depressed yields on fixed income assets like municipal bonds and Treasuries, preferred stocks and their related exchange traded funds are receiving renewed attention from income investors this year. Investors willing to apply a bit more scrutiny to this high-yield asset class may find something to like [.

PFXF: A Potent, Pertinent Way to Preferred Income

The VanEck Vectors Preferred Securities ex Financials ETF holds 142 preferred issues, predominantly in the United States. The underlying index specifically excludes financials that are well-covered by other ETF alternatives. This "secret sauce" is the differentiating factor that delivers alpha versus competitors.

PFXF: Excluding Financials Leads To Alpha

The VanEck Vectors Preferred Securities ex-Financials ETF holds 140 preferred issues, mostly in the United States.

PFXF: A Top Performer Of Preferred Share ETFs

With interest rates likely to remain low over the course of 2021, advisors and investors are scrambling to source higher of levels of income. Preferred stocks and exchange traded funds such as the VanEck Vectors Preferred Securities ex Financials ETF (PFXF) can help with that objective.

VanEck's PFXF ETF: Prefer a Higher Yield Strategy?

The ETF invests in preferred securities listed on US national securities exchanges – a balance between stocks and bonds. Prices took a hit due to the coronavirus pandemic but bounced back as Federal Reserve stepped in to take aggressive action.

VanEck Vectors Preferred Securities Ex Financials ETF: A Safe Bet With A Solid Return

With bond yields tumbling, it would be easy to think that these would be go-to days for preferred stocks and related ETFs. That's not the case.

In Today's Preferred ETF Climate, What's Not There Matters

PFXF: A Defensive Preferred Equity ETF For Troubling Times

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