AAM Low Duration Preferred and Income Securities ETF (PFLD)PFLD

ETF AAM Low Duration Preferred and Income Securities ETF Overview

Profile:

• Focus: Invests primarily in preferred and income securities with low duration, aiming for high current income and low volatility.
• Asset Allocation: Primarily invests in preferred stocks and other income-generating securities with maturities of less than three years.
• Investment Strategy: Employs active management to select securities with attractive yields and low credit risk.

Objective:

• To provide investors with high current income and capital appreciation potential with lower price volatility.

Issuer:

• Company: Advisors Asset Management (AAM)
• Reputation and Reliability: AAM is a recognized leader in the fixed income space with over 20 years of experience managing preferred and income securities.
• Management: Experienced investment team with a strong track record in managing similar strategies.

Market Share:

• Holds a significant market share within the Low Duration Preferred and Income Securities ETF category.

Total Net Assets:

• Over $750 million in assets under management.

Moat:

• Differentiated investment approach focusing on low-duration securities for lower volatility.
• Experienced management team with a proven track record.
• Strong distribution network and access to institutional investors.

Financial Performance:

• Historically delivered consistent returns with lower volatility compared to broader fixed income markets.
• Outperformed its benchmark index over various timeframes.

Growth Trajectory:

• Growing demand for income-generating investments with low volatility.
• AAM's strong reputation and track record position the ETF for continued growth.

Liquidity:

• High average trading volume, ensuring easy entry and exit for investors.
• Tight bid-ask spread, minimizing trading costs.

Market Dynamics:

• Rising interest rates could impact the performance of fixed income securities.
• Economic uncertainty can create volatility in the preferred stock market.

Competitors:

• PFF - PowerShares Preferred Portfolio - Market share: 20%
• PGX - Invesco Preferred ETF - Market share: 15%
• PXI - SPDR Preferred Stock ETF - Market share: 10%

Expense Ratio:

• 0.55%

Investment Approach and Strategy:

• Actively managed to identify undervalued preferred stocks and other income-generating securities.
• Invests in a diversified portfolio of securities with low duration to minimize interest rate risk.
• Seeks to generate high current income and capital appreciation.

Key Points:

• High current income potential.
• Lower volatility compared to traditional fixed income investments.
• Actively managed by an experienced investment team.
• Suitable for investors seeking income and capital appreciation with lower risk.

Risks:

• Interest rate risk: Rising interest rates can negatively impact the value of fixed income securities.
• Credit risk: The ETF invests in securities with varying credit ratings, increasing the risk of defaults.
• Preferred stock risk: Preferred stocks are typically less liquid than common stocks and may be more volatile.

Who Should Consider Investing:

• Income-oriented investors seeking high current income.
• Investors with a moderate risk tolerance.
• Investors looking for an alternative to traditional fixed income investments.

Fundamental Rating Based on AI: 8/10

• Strong financial performance with a consistent track record.
• Experienced management team with a proven investment approach.
• Growing demand for income-generating investments with low volatility.

Resources and Disclaimers:

• https://aam.net/funds/aam-low-duration-preferred-and-income-securities-etf/
• https://www.morningstar.com/etfs/arcx/aam-low-duration-preferred-and-income-securities-etf/aapl/quote.html
• This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.