AAM Low Duration Preferred & Income Securities ETF Hits Major AUM Milestone
Advisors Asset Management (AAM) is excited to share that its flagship product, the AAM Low Duration Preferred & Income Securities ETF (PFLD), has successfully surpassed the impressive milestone of $500 million in assets under management (AUM).
Understanding Low Duration ETFs
The PFLD ETF is noteworthy as it is the only low-duration preferred exchange-traded fund available in the market. It focuses on preferred securities that typically provide yields that are more attractive than those of comparable bonds. This approach allows investors to diversify their income sources effectively.
Benefits of Low Duration Preferred Securities
Investing in low-duration preferred securities presents an opportunity for robust monthly income. These investments are especially appealing in today's economic landscape, as they help mitigate risks associated with interest rate fluctuations. By focusing on lower duration, these securities can potentially offer greater stability amidst market volatility.
Expert Insights on the ETF's Success
“This milestone showcases PFLD's distinct market position and its effectiveness in assisting financial advisors in reaching their clients' investment goals,” stated Lance McGray, Managing Director and Head of ETF Product at AAM. He further emphasized, “In a climate marked by rising interest rates and inflation, low-duration preferreds combine high tax-efficient income with reduced exposure to interest rate risks. This blend is invaluable for income-focused investors navigating uncertain economic conditions.”
PFLD's Historical Context and Growth
Launched in 2019, PFLD aims not only to generate substantial monthly income but also to enhance diversification strategies within investment portfolios. It does this by tracking the performance of the ICE 0-5 Year Duration Exchange-Listed Preferred & Hybrid Securities Index (PHLD). Since inception, the ETF has resonated with investors looking for innovative ways to capitalize on preferred stocks.
Commitment to Innovation
McGray expressed pride in PFLD, calling it a groundbreaking ETF that signifies the growing investor demand for sophisticated investment strategies in the preferred stock sector. “Our commitment remains strong towards our shareholders and we strive to continue creating progressive opportunities in the ETF landscape,” he added.
A Closer Look at Advisors Asset Management
For over 45 years, AAM has established itself as a trusted partner for financial advisors and broker/dealers. The firm provides access to a diverse range of investment solutions including alternatives, ETFs, managed accounts, and structured products. AAM is part of SLC Management, which provides institutional alternatives and conventional asset management services.
Total Sales and Investments Achieved
In the recent year, AAM facilitated a staggering $32 billion in total sales and investments, utilizing a vast network of approximately 15,300 financial professionals accessing the firm's innovative investment solutions. Among this, around $7 billion arose from Exchange-Traded Fund (ETF) and similar investment vehicles.
Investing Responsibly
As with any investment, it is crucial for investors to carefully assess the fund's objectives, associated risks, and fees before committing their capital. The prospectus provides vital information that should be thoroughly reviewed prior to making investment decisions.
Frequently Asked Questions
What is the AAM Low Duration Preferred & Income Securities ETF?
The AAM Low Duration Preferred & Income Securities ETF (PFLD) is designed to target preferred securities and aims to provide attractive income while maintaining lower interest rate risk.
How did the PFLD ETF achieve its AUM milestone?
The ETF's success is attributed to its unique focus on low-duration securities that attract investors seeking stable returns and reduced risks related to interest rate changes.
What benefits do low-duration preferred securities offer?
Low-duration preferred securities can offer high yields while potentially minimizing exposure to interest rate volatility, making them an attractive option for income-focused investors.
Who oversees the management of the PFLD ETF?
The PFLD ETF is managed by Advisors Asset Management, which has a long-standing reputation for delivering innovative investment solutions to financial professionals.
How can investors learn more about AAM and PFLD?
For more information on AAM and its range of products including PFLD, visit their official website or contact their customer service for detailed inquiries.
