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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Chasing Value: Investing in ETFs for a Steady Income and High Yield |
Blogging Stocks - Aug. 17, 2010 - by Sheldon Liber
An investment professional was stimulated by yesterday's post Chasing Value: Granny Said, 'It Has Turned into One Big Casino'. She suggested an alternative investment for granny that is simpler and perhaps advantageous for older investors seeking fixed income. Such investors should consider the iShares S&P U.S. Preferred Stock Index (PFF) exchange traded fund for its high yield and simplicity.
While this investment vehicle would not work for my particular "granny" due to her unique circumstances, it might be ideal for many others.
This ETF is made up of a broad cross section of the preferred shares of high-yielding stocks. It is currently offering a 6.76% return, the reduced volatility of a mutual fund and far greater liquidity. It is also a more rewarding alternative to Treasury notes, CDs, TIPS and hiding your money in a mattress -- all of which pay almost nothing.
The professional investor is not the only proponent of this investment vehicle. "Trust preferred securities, which fall somewhere between corporate debt and preferred stock, are a relatively safe place to find yield during times of economic uncertainty," Bill Larkin, portfolio manager for fixed income at Cabot Asset Management in Salem, Mass told Bloomberg. "They pay a fixed amount in interest quarterly, can be redeemed before maturity at whatever the market value is at the time, and mature at face value."
I do not dabble in preferred stocks myself, but I do own and have recommended two other ETFs for similar reasons. The first is the Vanguard Total Bond Market (BND) and the other is the Vanguard Utilities (VPU).
One can diversify by investing in all three to cover a broad spectrum of the bond market, utilities market and preferred stocks. I would think that even the most paranoid among us might then find some peace of mind while collecting a higher level of regular income.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture and planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: He owns shares of BND and VPU.
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| Stuff to look at |
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S&P Commentary and Newsletters: S&P
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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