iShares Preferred and Income Securities ETF
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Many investors in 2025 need dependable passive income, especially those getting ready to retire, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).
CDs (Certificates of Deposit) yield a fixed rate, and many have been leaning towards them due to the higher interest rate environment in recent years.
Finding high-quality, durable, high-yielding investments is one of the best ways to build a passive income stream for retirement. Preferreds from high-quality companies provide durable, high-yield income with relatively low risk, making them attractive additions to retirement-focused portfolios. I share two of the most attractive, high-yielding preferreds available for retirees today.
Retiring on passive income from dividends is a great way to reduce sequence of returns risk. Many investors generate this income from a basket of high-yield CEFs and ETFs. However, this strategy comes with a lot of risks and shortcomings.
A lot of people enter retirement feeling optimistic about their prospects, only to realize that they don't have nearly as much income as they need to cover their expenses with ease.
iShares Preferred and Income Securities ETF (NYSEARCA:PFF) offers investors a 6.4% yield by investing in U.S.
Generating a steady and hefty stream of income is a key factor in any investing strategy.
The iShares Preferred and Income Securities ETF offers conservative investors moderate yield (6.36%) and low volatility via investment-grade preferreds and hybrids. PFF has underperformed its benchmark and peers, with a 2-star Morningstar rating and lackluster long-term returns, especially after a -18% drawdown in 2022. While PFF provides downside protection and steady income, it has not fully participated in recent bull markets and lags closed-end fund peers like NPFD and JPC.
The iShares Preferred and Income Securities ETF (PFF) is the largest ETF focused on preferred stocks and income securities. PFF holds over 450 securities, including preferred stocks, baby bonds, and hybrid securities with bond-like features. The ETF offers diversified exposure to income-generating assets, appealing to investors seeking yield and stability.
In the world of dividends, the big names from JP Morgan, Schwab, Fidelity, and iShares always seem to get most of the attention.
Most 10% yielding portfolios inevitably crash and burn. However, there is a path to achieving a potentially sustainable 10% yielding portfolio. I share how it possibly can be done.
High-yielding investments can meaningfully help your passive income stream for an early retirement. However, it is important to be highly selective to avoid buying dividend traps. I share three of the very best 9%+ yielding investment opportunities for those looking to retire on passive income.
These two high-yield funds combine dependable income with exposure to some of the strongest long-term secular trends. They offer high yields that are backed by portfolios filled with high-quality companies. They also trade at very attractive valuations and provide strong dividend growth.
If you're worried about the stock market possibly selling off in October, you might be hesitant to add any money to it. (Many big stock market crashes have happened in October, after all.
A simple five-fund portfolio for high yield, growth, and diversification. Earn 7–9% income while still beating inflation through dividend growth. Here's how to build a simple retirement portfolio for lasting income.
Creating passive income streams can take many forms. Investors can choose from a plethora of stocks, bonds, alternative assets (such as real estate) and other less-traditional options (including crypto, etc.
At various stages of life, we can have different financial goals and this will mean owning different exchange traded funds (ETFs).
iShares Preferred and Income Securities ETF (PFF) is favored over iShares High Yield Corporate Bond ETF (HYG) as the Fed has entered an easing cycle. PFF offers higher yield, better credit quality, and lower fees than HYG, with recent outperformance driven by expectations of falling rates and economic uncertainty. PFF's sector concentration in financials and lower diversification present risks, but Fed stress tests show banks are well-capitalized for downturns.
iShares Preferred and Income Securities ETF offers an attractive yield but is highly concentrated in the financial sector, increasing volatility risk. PFF's portfolio is diversified by issuer, but 68% exposure to financials makes it vulnerable to sector-specific shocks and interest rate volatility. PFF's yield is reasonable versus high-yield and investment-grade bonds, but its valuation is not compelling enough to warrant a Buy rating.
Interest rates are very likely set to go down. This creates a fruitful ground for REIT bulls to become optimistic. Yet, there is an important caveat to this.