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03 Jul 2026, 17:21 UTC · 2h ago
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3 claims · each scored for market impact
Preferred stocks are sensitive to both equity market declines and rising interest rates. — This highlights the dual-risk profile of the asset class, suggesting potential price drops during rate hikes or broad market volatility.
-0.40Actively managed preferred ETFs like PFFA utilize leverage to achieve higher yields, introducing additional risk and higher fees. — Leverage increases the potential for loss during market downturns and reduces net returns via higher expense ratios.
-0.20Major preferred stock ETFs, such as PFF, have significant concentration in financial institutions (approx. 56.87%). — Concentration risk means these funds are disproportionately affected by volatility or credit events in the banking sector.
-0.10Which stocks this story touches
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The article mentions the iShares Preferred and Income Securities ETF (PFF) and other ETFs, but does not provide sentiment on the underlying issuers themselves.
[mutual] Both are exchange-traded funds offering exposure to the preferred stock market, competing for investor assets.
[mutual] Both are exchange-traded funds offering exposure to the preferred stock market, competing for investor assets.
[mutual] Both are exchange-traded funds offering exposure to the preferred stock market, competing for investor assets.
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