Global X Preferred ETF Investment Review

The Global X Preferred ETF is a unique investment option that can add some diversity to your portfolio. It allows you to invest in a basket of preferred stocks from around the world.

Global X Preferred ETF has a low expense ratio of 0.35%, making it a cost-effective option. This is a significant advantage for investors looking to minimize their costs.

Investors can gain exposure to a wide range of preferred stocks from various industries and countries through the Global X Preferred ETF. This can provide a more diversified portfolio and potentially reduce risk.

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The Global X Active Preferred Share ETF has a 1.33% YTD performance return, with a volatility of 0.79% and a risk-adjusted performance of 1.70. Its performance can vary greatly depending on the time frame, with a -0.25% return on the 1 Day period and a 0.41% return on the 1 Week period.

The ETF's performance over the past 10 years has been relatively stable, with a 0% return. However, its 3-year and 5-year returns have been negative, at -15.69% and -22.68% respectively.

Here's a breakdown of the ETF's performance over the past few years:

The PFFD (Global X US Preferred ETF) has a portfolio turnover rate of 36%, which is slightly lower than the average for the Preferred Stock category. This means it holds its assets for around 0.0 years, indicating relatively stable investments.

In January 2025, PFFD returned 0.9%, earning it an A grade due to its higher return compared to the category average of 0.7%. This is a significant improvement from its past performance.

The PFFD's expenses and fees are also worth considering. Unfortunately, the article doesn't provide detailed information on these costs, but we do know that it has a front load of 0% (N/A) and a deferred load of 0% (N/A). This means that investors won't have to pay any upfront or deferred fees when buying or selling shares.

Here's a summary of PFFD's performance over the past few years:

As you can see, PFFD's performance has been quite volatile over the years. In 2022, it experienced a significant decline of -20.2%, while in 2020, it returned a respectable 8.9%.

The Global X Active Preferred Share ETF has had a mixed performance over the years. In 2017, it had a return of 15.52%, but in 2018, it dropped by 9.98%. This volatility is not uncommon in the world of investments.

The ETF's annualized performance since its inception on November 22, 2010, is 4.37%. This is a decent return, especially when considering the overall market fluctuations.

Here's a breakdown of the ETF's yearly returns:

It's worth noting that the ETF's performance can be quite different from year to year. In some years, it performs well, while in others, it struggles. This is to be expected in the world of investments.

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The Global X Preferred ETF has its roots in the Global X Funds family, which was established to provide investors with a range of innovative investment products.

The fund's inception date is September 11, 2017, marking the beginning of its journey in the market.

The Global X Preferred ETF is a US-based fund, domiciled in the country and listed in USD.

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The Global X U.S. Preferred ETF has a legal name that matches its fund family name, Global X Funds. This consistency is a good sign of a well-organized investment vehicle.

The fund was launched on September 11, 2017, which is a relatively recent date. This means it's still a relatively new investment option.

Here are some key details about the fund:

The fund's manager is Nam To, who is likely responsible for making key investment decisions.

Fund Classification is a critical aspect of understanding how a fund performs and where it fits in your investment portfolio.

A fund's classification can be based on its investment objective, such as equity, fixed income, or balanced.

Equity funds invest in stocks, aiming to provide long-term capital growth.

Fixed income funds, on the other hand, invest in bonds, aiming to generate regular income.

Balanced funds, as the name suggests, aim to balance both growth and income.

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Some funds are classified based on their geographic focus, such as international or global funds.

International funds invest in developed markets outside of the investor's home country.

Global funds, by contrast, invest in both developed and emerging markets.

Funds can also be classified based on their investment style, such as value or growth.

Value funds focus on undervalued stocks with potential for long-term growth.

Growth funds, by contrast, focus on stocks with high growth potential.

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The Global X US Preferred ETF has received grades for various time periods, reflecting its performance relative to its category. The fund received an A grade for the year to date, outperforming its category by 0.2 percentage points.

Here's a breakdown of the ETF's grades over different time periods:

This suggests that the ETF has been performing well in the short-term, but has struggled in the longer-term. The fund's performance has been inconsistent, with some periods seeing significant losses, such as the -20.5% return in 2022.

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The Global X Preferred ETF has a significant concentration of assets, with a net asset value of $2.47 billion. This is a substantial amount, but it's worth noting that it's still relatively small compared to the category high of $15.4 billion.

The fund has a moderate number of holdings, with 212 positions. This is a manageable size, but it's not the smallest or largest in its category. In fact, the category low is 49 holdings, while the category high is 444.

Here are some key statistics about the fund's top 10 holdings:

The fund's top 10 holdings make up a significant portion of its overall assets, with a weighting of 19.49% in the PFFD. This is a relatively high concentration, but it's worth noting that the category high is 48.1%.

Concentration Analysis is a crucial aspect of Portfolio Analysis. It helps us understand how concentrated a portfolio is in terms of its holdings and assets.

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A portfolio with a high concentration of assets in its top holdings can be riskier than one with a more diversified spread. For example, PFFD has a net asset concentration of 471 million in its top 10 holdings, which accounts for 19.49% of its total net assets.

This level of concentration can be a concern, especially if the top holdings are not well-diversified. On the other hand, a portfolio with a more even distribution of assets across its holdings can be less risky.

Let's take a look at the concentration of PFFD's holdings across different categories. Here's a comparison of PFFD's number of holdings and net assets across three categories: PFFD, Category Low, and Category High.

As we can see, PFFD has a significantly higher number of holdings and net assets compared to Category Low, but lower compared to Category High. This suggests that PFFD's portfolio is more concentrated than Category High, but less concentrated than Category Low.

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Asset allocation is a crucial aspect of portfolio analysis, and it's essential to understand how different assets perform in various market conditions. The table below shows the asset allocation for a specific portfolio.

The portfolio is heavily weighted towards preferred stocks, which makes sense given their relatively high return potential. The return on preferred stocks can be as high as 121.18%, making them an attractive option for investors.

Cash and convertible bonds also have a significant presence in the portfolio, with weightings of 0.67% and 0.69% respectively. These assets provide a relatively stable return, with cash returning 11.04% and convertible bonds returning 31.65% in the best-case scenario.

Stocks and bonds have a weighting of 0%, indicating that they are not part of this specific portfolio.

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Fees and distributions are an important aspect of investing in the Global X Preferred ETF. The fund's distribution policy is outlined in the prospectus, which can be found on the Global X website.

The Global X Preferred ETF has a dividend yield of 6.3%, making it an attractive option for income-seeking investors. This means that for every $100 invested, you can expect to earn $6.30 in dividend payments per year.

The fund's distribution frequency is monthly, which can provide more regular income for investors. However, it's essential to note that the payment of distributions is not guaranteed and may fluctuate at any time.

Here are some key distribution statistics for the Global X Preferred ETF:

It's also worth noting that the fund's sales fees, including front load and deferred load fees, are not applicable, according to the provided information.

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Operating fees can eat into your investment returns, so it's essential to understand what you're paying. The Global X US Preferred ETF has a portfolio turnover rate of 36%, which is relatively high compared to the average of 37% for the Preferred Stock category.

High turnover can lead to higher expenses, which can lower your after-tax returns. In January 2025, the Global X US Preferred ETF returned 0.9%, earning it a grade of A in the Preferred Stock category.

The average return for the category was 0.7%, so the ETF's return was in the top 20% for that time period. To put it simply, the ETF's performance was above average.

Here's a breakdown of the sales fees associated with the Global X US Preferred ETF:

The ETF doesn't have a front-load or deferred-load fee, as indicated by the "N/A" values. However, the category return low and high for sales fees are 2.00% and 5.75% respectively, for front load and 1.00% for deferred load.

Distributions are an essential aspect of investing in an ETF. The YTD Total Return is 2.1%, which indicates the total return on investment over the past year.

The 3 Yr Annualized Total Return and 5 Yr Annualized Total Return are both 0.8%, showing a relatively stable performance over the long term. Capital Gain Distribution Frequency is not applicable, which means there are no capital gains distributions to report.

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The Net Income Ratio is 4.99%, indicating the percentage of income generated by the ETF's investments. This is an important metric for investors to consider when evaluating the ETF's performance.

Dividend Yield is a key metric for income investors, and in this case, it's 6.3%. This means that for every dollar invested, the ETF is expected to generate 6.3 cents in dividend income. Dividend Distribution Frequency is monthly, which provides a regular stream of income for investors.

Here's a summary of the key distribution metrics:

Performance Metrics are a crucial aspect of evaluating the Global X Preferred ETF. The YTD performance returns stand at 1.33%.

The volatility of the ETF is relatively low, with a 1.28% volatility over the past week. This suggests that the ETF has been relatively stable in recent times. However, the 3 Months period saw a significant drop in performance returns, at -2.66%.

Here's a breakdown of the ETF's performance returns and volatility over different periods:

The Risk Adjusted Performance, which takes into account both returns and volatility, is a more nuanced measure of the ETF's performance. Over the past 1 Year, the Risk Adjusted Performance is -0.08%.

The annualized performance of an investment is a crucial metric to understand its long-term growth. You can find this information in the annualized performance table.

The Global X Active Preferred Share ETF has a 1-year annualized performance of 22.62%. This is a significant return, especially when compared to other investments.

The 10-year annualized performance of the ETF is 4.75%. This shows that the investment has consistently grown over the long term, but at a slower pace than in the short term.

Here's a breakdown of the ETF's annualized performance over different time periods:

Keep in mind that past performance is not always indicative of future results, but it can give you an idea of how the investment has performed in different market conditions.

The Net Income Ratio is a key metric to understand a company's financial performance.

PFFD's Net Income Ratio is 4.99%, which is significantly higher than the Category Low of 0.88%.

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This indicates that PFFD is generating a substantial amount of net income relative to its revenue.

Here's a comparison of PFFD's Net Income Ratio with its Category peers:

PFFD's Net Income Ratio ranks 21.13% among its Category peers, suggesting that it's performing better than most in its industry.

The Dividend Information section of the Global X Preferred ETF is a treasure trove of valuable data. The ETF has a Dividend Yield of 6.25%.

The most recent dividend payout per unit is $0.1135, which has been a consistent amount since at least November 2019. This suggests a reliable and steady dividend stream for investors.

Here's a breakdown of the ETF's dividend history:

The latest dividend payout per unit is consistently 0.1135, with the exception of one instance on 04/08/2019, where it was 0.1148.

The payment dates for the dividend are typically between 10-12 days after the ex-date. For example, the payment date for the ex-date 04/05/2020 was 12/05/2020.

The dividend payout per unit has been consistent across multiple payment dates, with the exception of the one mentioned earlier. This suggests a stable dividend policy.

Here is a list of the latest dividend payouts:

The Global X U.S. Preferred ETF is a popular investment option, and understanding its key statistics can help you make informed decisions. The ETF's day's open was $19.81.

The Global X U.S. Preferred ETF's day's range was between $19.75 and $19.85, indicating a relatively stable market. This range is a good indicator of the ETF's volatility.

In terms of trading volume, the ETF saw 1,234,427 shares traded on the day. This is a significant number, indicating high market activity.

The ETF's 52-week range is between $19.06 and $21.08, showing a moderate level of fluctuation over the past year. This range can give you an idea of the ETF's overall performance.

The Global X U.S. Preferred ETF has a beta of 0.59, which is relatively low. This means the ETF is expected to be less volatile than the overall market.

The ETF's 3-year Sharpe ratio is -0.71, indicating a negative return relative to its risk. This is a key statistic to consider when evaluating the ETF's performance.

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The Global X U.S. Preferred ETF's 3-year Sortino ratio is -0.93, which is also negative. This ratio measures the ETF's returns relative to its downside volatility.

The ETF's volatility is 8.57, which is relatively high. This means the ETF is expected to be more volatile than the overall market.

Here's a summary of the ETF's key statistics:

The ETF's 14-day RSI is 50.05, indicating a neutral market condition. This is a good indicator of the ETF's overall momentum.

The Global X U.S. Preferred ETF's 14-day ATR is $0.163171, which is relatively low. This means the ETF is expected to have lower trading costs.

The ETF's 20-day SMA is $19.809, which is a good indicator of its overall trend.

The Global X U.S. Preferred ETF has shown some interesting returns over the years. According to the provided data, the YTD return is 2.1%, with a category return low of -1.6% and a high of 3.7%.

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The 1-year return is significantly higher at 6.0%, with the category return low at 2.4% and the high at 16.2%. This suggests a strong performance in the past year. The 3-year and 5-year returns are more subdued, with annualized returns of 0.8% in both cases.

Here's a breakdown of the top 10 holdings in the ETF:

It's worth noting that the holdings can change over time, with some companies being added or removed from the portfolio. For example, the data shows that Synovus Financial Corp was added as a new holding on 2024-11-30, while SCE Trust IV was sold out on the same date.

The U.S. Holdings Heat Map provides a visual representation of the top holdings in the Global X U.S. Preferred ETF. The heat map is a useful tool for investors to quickly identify the largest holdings in the fund.

The largest holding in the fund is Synovus Financial Corp, with a market cap of $25.36 and a percentage of the total portfolio of +0.43%. This is a significant holding, making up a notable portion of the fund's overall value.

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The top 10 holdings in the fund are: Synovus Financial Corp, Bank of America Corp, MetLife Inc, SCE Trust IV, SCE Trust III, Kimco Realty Corp, SL Green Realty Corp, SLM Corp, Tennessee Valley Authority, and Prenetics Global Ltd.

Here is a breakdown of the top 10 holdings:

Over the past year, the Global X U.S. Preferred ETF has returned 6.0%, outperforming 85.14% of its category peers.

The ETF's 3-year and 5-year returns are 0.8% and 0.8% respectively, which is lower than the category average.

In 2024, the ETF returned 7.1%, ranking 82.67% in its category. The previous year, 2023, saw a return of 6.9%, ranking 33.33% in its category.

Here's a breakdown of the ETF's yearly returns from 2020 to 2023:

Note that the ETF's performance has been volatile over the past few years, with a significant decline in 2022.