AAM Achieves Major Milestone with Low Duration Preferred ETF Surpassing $500 Million AUM

AAM's Low Duration Preferred & Income Securities ETF Surpasses $500 Million AUM

Advisors Asset Management (AAM), a well-known player in the investment solutions arena, proudly announced that its innovative AAM Low Duration Preferred & Income Securities ETF (NYSE PFLD) has eclipsed the significant $500 million mark in assets under management (AUM). This accomplishment not only showcases AAM's leadership in creating diverse investment solutions but also emphasizes the growing popularity of low-duration preferred securities among investors.

Understanding PFLD's Unique Positioning

The AAM Low Duration Preferred & Income Securities ETF is noted for being the first of its kind in the marketplace. Designed to target preferred securities, PFLD taps into a category that has previously offered yields that overshadow those of similarly rated bonds. This unique attribute presents investors with a way to rethink their strategies and broaden their income streams, especially in the current financial climate.

Moreover, the ETF emphasizes low-duration preferred securities, which are likely to generate robust income while minimizing exposure to interest rate volatility and other investment risks. In times of economic uncertainty, this approach provides investors with a reliable means to manage both risks and returns effectively.

Insights from AAM Leadership

Lance McGray, Managing Director and Head of ETF Product at AAM, highlighted the significance of this milestone: "This achievement underscores PFLD's distinct positioning as a reliable tool for financial professionals aiming to meet their clients' investment objectives. As investors grapple with concerns of rising interest rates and inflation, our ETF offers a compelling mix of high tax-efficient income combined with lower interest rate risk."

Investors are increasingly gravitating towards low-duration options, particularly as concerns around interest rates and inflation rise. The combination of yield, stability, and limited exposure to duration grounds PFLD as an essential asset for income-focused investors navigating these turbulent waters.

Performance and Investment Goals

Launched in 2019, PFLD is engineered to generate attractive monthly income while enhancing portfolio diversity for its holders. The ETF aims to reduce the impact of fluctuations in interest rates by mirroring the total return performance of the ICE 0-5 Year Duration Exchange-Listed Preferred Hybrid Securities Index (PHLD).

The encouraging reception PFLD has received is a clear indicator that investors appreciate a more sophisticated approach to the preferred stock market. As McGray expressed, "We are proud to witness our first-of-its-kind ETF reaching this impressive milestone, which reflects the demand from investors seeking a smarter way to engage in this sector. Our commitment to our shareholders remains strong, and we are excited for future opportunities within the ETF landscape."

AAM's Commitment to Investors

Advisors Asset Management has a 45-year history of being a reliable resource for financial advisors and broker/dealers, positioning itself strongly within the investment community. Apart from PFLD, AAM offers a wide range of products, including alternatives, ETFs, fixed income markets, managed accounts, mutual funds, structured products, and unit investment trusts.

In the past year alone, AAM facilitated over $32 billion in combined sales and investments through a vast network of financial professionals, showcasing the firm's extensive reach and influence in the investment world.

As the investment landscape evolves, AAM's innovative solutions continue to cater to the changing demands of investors. They provide insight-led investment strategies designed for profitability even amid unpredictable markets.

Conclusion

In conclusion, AAM's Low Duration Preferred & Income Securities ETF's achievement of over $500 million in AUM is a testament to its strategic approach in addressing investor needs. With its high-yield potential and minimal duration risk, PFLD stands out as a formidable component in an investor's portfolio, especially during uncertain economic periods. AAM looks forward to leading the charge in providing more pioneering solutions in the ever-growing ETF market.

For more information about Advisors Asset Management and their diverse offering, visit aamlive.com.