VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) Experiences Significant Volume Surge – Is it a Good Investment?

The VanEck Preferred Securities ex Financials ETF (NYSEARCA:PFXF) witnessed a notable uptick in trading volume recently. On a recent Monday, around 788,955 shares changed hands during mid-day trading, marking a substantial 55% increase compared to the previous trading session where volume was recorded at 510,320 shares. The ETF's last recorded price was $17.15, down slightly from its previous close of $17.21.

Performance Insights for the VanEck Preferred Securities ex Financials ETF

This ETF has demonstrated solid performance metrics, with a 50-day moving average price currently at $17.90 and a 200-day moving average price at $17.76. The ETF boasts a market capitalization of $1.60 billion and a remarkably low price-to-earnings ratio of 0.59, suggesting it is possibly undervalued. Its beta stands at 0.51, indicating lower volatility relative to the market.

Investment Trends from Hedge Funds

Recent activity among institutional investors and hedge funds reveals a positive sentiment towards the VanEck Preferred Securities ex Financials ETF. For instance, B. Riley Wealth Advisors Inc. increased its stake in the ETF by 40% in the third quarter, now holding 63,215 shares valued at approximately $1,155,000 after acquiring an additional 18,065 shares in that period. Similarly, Sanctuary Advisors LLC enhanced its position by 16.5%, obtaining a total of 99,719 shares valued at about $1,797,000 following the purchase of 14,128 additional shares. MML Investors Services LLC also grew its holdings by 19.7%, now owning 951,891 shares worth nearly $17,382,000 after buying 156,434 shares in the last quarter. Other notable increases in holdings came from Insigneo Advisory Services LLC, which raised its stake by 11.5%, and Stifel Financial Corp., which significantly boosted its holdings by 84.7%, now owning 318,062 shares valued around $5,808,000.

Understanding the VanEck Preferred Securities ex Financials ETF

The VanEck Preferred Securities ex Financials ETF primarily invests in broad credit fixed income. It tracks an index that comprises USD-denominated preferred securities as well as securities deemed functionally equivalent, with a notable exclusion of securities issued by financial firms.

Conclusion

Given the recent surge in trading volume and the positive adjustments made by several institutional investors, the VanEck Preferred Securities ex Financials ETF appears to be an intriguing option for investors seeking exposure to preferred securities outside the financial sector. The ETF's relatively low price-to-earnings ratio and solid market capitalization indicate potential investment opportunities.

ETFs, Investment, Finance