This ETF offers exposure to preferred stock issued by companies in developed markets outside of the U.S., making IPFF a potentially useful tool for investors looking to tap into an asset class that is often underweight or overlooked altogether in portfolios of U.S.-based investors. Preferred stock is known for exhibiting characteristics of both stocks and bonds, and generally offering a relatively high payout.
This ETF could be a valuable addition to long-term, buy-and-hold portfolios, especially for investors looking to enhance the current income derived from their investments. Preferred stock is capable of delivering distributions that are considerably greater than traditional fixed income securities, meaning that this fund might be appealing to yield-hungry investors. It should be noted, of course, that these returns do not come without risk; preferred stock ETFs tend to be dominated by securities issued by financial companies.
IPFF is somewhat unique in that it offers exposure to preferred stock from non-U.S. issuers; those seeking securities from U.S. companies might like PFF, while CNPF taps into the Canadian preferred stock market.