PREF

📎 Investment Objective

The Principal Spectrum Preferred Securities Active ETF (PREF) seeks to provide current income by investing primarily in preferred securities.

✨ Key Features

• Actively managed portfolio of preferred securities
• Emphasis on income generation through preferred stock investments
• Potential for lower volatility compared to common stock investments
• Diversified exposure across various preferred stock issuers and sectors

⚠️ Primary Risks

• Interest rate risk: Preferred securities are sensitive to changes in interest rates, which can impact their prices
• Credit risk: The fund is exposed to the creditworthiness of the issuers of the preferred securities it holds
• Liquidity risk: Preferred securities may have lower trading volumes, which can affect the fund's ability to sell positions
• Active management risk: The success of the fund's active management strategy is dependent on the portfolio managers' investment decisions

👤 Best For

The Principal Spectrum Preferred Securities Active ETF may be suitable for investors seeking a source of current income and relatively lower volatility compared to common stock investments. It may be particularly appealing to those with a moderate risk tolerance who are looking to diversify their fixed-income exposure beyond traditional bonds.