This blog provides comments and thoughts on the financial markets and specifically dividend producing investments. SPFF has been mentioned several times.
**********Go to “Core Portfolio” for current holdings.**********
(Update July 2014. We do NOT own.)
(Update September: I am staying away from preferreds…if you own SPFF hold it.)
(Update April: SPFF is holding at $15.00. OK to buy now. I really like this fund.) Global X Super Income Preferred ETF (SPFF) tracks 50 of the highest yielding North American preferred securities. SPFF pays just under 8% and helps you diversify into a broad basket of preferreds.
SPFF just went ex-dividend and now is the time to buy or add to your positions. Try and get shares at $14.95–it may drop to $14.86. I suggest no more than 1% of the portfolio, but up to 4% if you can take a little more risk. SPFF holds a large chunk of financials and some advisors feel this is risky–as financial institutions are calling a lot of their preferreds–which may negatively affect the dividend. Also consider PFF which is more diversified but offers a lower dividend….and is less risky in my opinion.
(April Update: This also looks good, try and get at $20.26. “Market Vectors Preferred Securities ex Financials ETF (PFXF) – This new and unique offering from Van Eck Global seeks to differentiate itself by getting away from the traditional financial sector dominance of other preferred ETFs. Its primary sector exposure includes REITs, utilities, automotive, and telecommunication companies. The current yield of PFXF is 5.96%.”)
“A preferred stock is a blended security made up of leveraged companies. The stock has bond characteristics in that they pay a fixed income regularly and do not prosper from the earnings growth of the subject company. Preferred stocks trade on an exchange just like any other security.”