PFFD Profile
The Global X U.S. Preferred ETF is designed to provide investors with exposure to U.S. preferred securities through an actively managed investment strategy. The fund commits at least 80% of its total assets to the securities that comprise its underlying index, ensuring substantial alignment with the benchmark it tracks. This strategy allows the fund to mirror the performance of the U.S. preferred securities market, focusing on a broad spectrum of these instruments to capture diverse opportunities within this asset class.
In addition to investing in the underlying index, the fund allocates at least 80% of its total assets to preferred securities that are either domiciled in the U.S., traded principally in U.S. markets, or derive a significant portion of their revenues from the U.S. economy. This focus on U.S.-centric preferred securities helps investors benefit from the specific characteristics and stability of the U.S. financial markets, providing a targeted approach to income generation and capital preservation.
Preferred securities, which are the primary investment of the fund, offer a combination of fixed-income benefits and equity-like features. They typically provide higher yields than common stocks and have seniority over common equity in case of liquidation, making them an attractive option for income-focused investors. The Global X U.S. Preferred ETF aims to harness these benefits by investing in a diverse range of preferred securities, thereby capturing the broad performance of the U.S. market for these instruments.
The fund's investment approach involves selecting a representative sample of U.S. preferred securities to track the performance of its underlying index. By doing so, it provides investors with an efficient way to gain exposure to this specific asset class, while also managing risks associated with individual securities. The Global X U.S. Preferred ETF is suited for investors seeking stable income through preferred stocks and those looking to diversify their portfolios with U.S.-based financial instruments.
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