Global X Super Income Preferred ETF (SPFF) debuts on NYSE

Jul 22nd, 2012 | By | Category: Alternatives / Multi-Asset

Global X Funds, the New York-based ETF provider, has launched the Global X SuperIncome Preferred ETF (SPFF). SPFF is designed to track 50 of the highest yielding preferred securities in North America.

Global X Super Income Preferred ETF (SPFF) debuts on NYSE

Global X Super Income Preferred ETF (SPFF) tracks 50 of the highest yielding preferred securities in North America.

For investors seeking income, preferred shares are an asset class worth considering due to their unique combination of bond and equity characteristics.

Like bonds, preferred shares generally pay stable dividends with more frequent distributions than common shares. Like equity, preferred shares trade on an exchange and have the potential to appreciate in value, offering additional income growth potential for investors.

In addition, preferred shareholders have priority over common shareholders with regard to claims on company earnings and assets – this may provide downside protection if a company is forced to liquidate its assets.

By screening for the highest yielding preferred securities and paying monthly dividends, SPFF allows investors to diversify their income streams and potentially increase the yield of their overall portfolio.

The Global X SuperIncome Preferred ETF tracks the S&P Enhanced Yield North American Preferred Stock Index. The index is comprised of US- and Canada-traded preferred stocks that meet criteria relating to size, liquidity and exchange listings, among others.

Currently, the top five holdings are preferred securities issued by financials Credit Suisse, AIG, Aegon, Wells Fargo and Prudential Financial. Indeed, financials comprise 74% of the index with Insuarance making up a further 8%.

Interestingly, the fund comes hot on the heals of the recently launched Market Vectors Preferred Securities ex Financials ETF (PFXF) [See Market Vectors launches Preferred Securities ex Financials ETF (PFXF)], which offers investors access to the income potential of preferred securities, expressly without the volatility of financial securities.

“For investors seeking higher investment income, SPFF offers relatively efficient access to preferred stocks that could potentially provide greater yields,” said Bruno del Ama, chief executive officer of Global X Funds.

The fund is listed on the NYSE Arca and has a management fee of 0.58%.

Tags: , , , , ,

Leave a Comment



More in Alternatives / Multi-Asset
Elliott Wislar, CEO of Clearbrook Global Advisors
ClearShares launches actively managed multi-asset ETF

US-based Clearbrook Global Advisors has launched their exchange-traded fund platform ClearShares with the introduction of the ClearShares OCIO ETF (NYSE: OCIO). OCIO is...

Harvest Portfolios lists global REIT income leaders ETF
Harvest Portfolios lists global REIT income leaders ETF

Harvest Portfolios Group has launched the Global REIT Leaders Income ETF (Toronto: HGR), an actively managed ETF investing in real estate investment trusts...

Close