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Thanks, these were on my bottom watch list. Almost forgot about them. Thx again


DD on PFF: majority of holdings per yahoo are BAC and other bailout banks

Is there a non financial preferred ETF?


Additional DD:

Very difficult to get around the Financials when it comes to a Preferred oriented ETF or CEF. You can always look at the individual holdings of each ETF or CEF and see what sort of non-financial preferreds they are holding. PFF is holding preferreds from FCX, SGP, CHK, AVY(an odd one), REP, and quasi financials - MET, PSA, and F.

According to skillanalytics ETF correlation tracker, there is a 10, 50, 120, and 260 day correlation of .947, .511, .771, and .933 respectively between PFF and XLF. With the exception of the 50 day, those are all healthy correlations and positive - so one could say PFF is simply moving in the same direction as the financial sector.


Recommended reading if you're partial to preferreds:

Flaherty & Crumrine Preferred Valuation After the TARP

TARP Capital Purchase Program Senior Preferred Stock and Warrants - Summary of Senior Preferred Terms


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