After a rocky first half of the year, it may be a good time to buy preferred securities.
The ICE BofA Fixed Rate Preferred Securities index, which tracks the performance of fixed-rate preferred securities, has a yield-to-worst of 6.7%.
While many preferreds have fixed rates, some have floating rates or fixed-to-floating rates that switch from fixed to floating after a certain period of time.
In 2022, the ICE BofA Fixed Rate Preferred Securities index lost 19%.
Its top-rated funds include Global X US Preferred ETF and iShares Preferred & Income Securities ETF.
Persons:
Leslie Falconio, Michael Youngworth, Youngworth, Falconio, Bonds, JR Humphreys, Humphreys, Humphrey, America's Youngworth, CNBC's Michael Bloom
Organizations:
Treasury, Federal Reserve, UBS, BofA Securities, Securities, Brock Investment Advisors, ICE, JPMorgan, American Equity Investment, Western Alliance, Bank, America's, preferreds . Bank of America, Global, US, iShares, Income Securities
Locations:
preferreds, preferreds .