PFXF Challenges The S&P 500's Earnings Yield <4% With A Yield >6%

Financial Serenity1.39K FollowersFollow5ShareSavePlay(10min)CommentsSummaryVanEck Preferred Securities ex Financials ETF offers exposure to non-financial preferreds with a competitive 6.78% yield and monthly distributions.PFXF's exclusion of financials, high duration, and significant issuer concentration, especially Boeing, make it sensitive to interest rates and credit spreads.The fund is attractive when long Treasury yields are high and S&P 500 earnings yield is compressed, but widening credit spreads could pressure prices, especially for lower-rated holdings.Today it could be in a favorable distribution context, but there are heightened risks from potential credit spread widening due to geopolitical tensions. luchezar/iStock via Getty Images I have always appreciated preferred stocks. Although very criticized for their inability to generate excess value compared to the equity segment, I have personally always seen them as an equity-like asset with a competitive distribution for anThis article was written byFinancial Serenity1.39K FollowersFollowFinancial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market.

On Seeking Alpha, we combine insights from rigorous data analysis with actionable opinions and ratings on ETFs and other trending instruments in the asset management space. Our mission is to deliver valuable, data-driven perspectives to help investors make informed decisions in this ever-evolving market.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The author expresses only personal opinions and does not provide financial advice. The content is for informational purposes only and should not be considered as investment recommendations. The author assumes no responsibility for any investment decisions made based on this article. Always conduct your own research or consult with a financial advisor before making any investment choices. The author makes no guarantees regarding the data, and the user agrees that the author shall not be held liable for the user's use of the data.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.