Any reader of my last article 'PFF: Are You Really Gonna Buy The Worst Preferred Stock?' could probably guess I am not this ETF's biggest fan. This is true: I think most investors could pick a preferred stock portfolio superior to the iShares U.S. Preferred Stock ETF (PFF). However, there would be a little more risk through lack of diversification; no private investor could realistically buy 273 preferred stocks.
A good question brought up in the comments section asked if there were any better alternatives to the PFF. Thanks to Jason Cawley for replying and suggesting the Cohen & Steers Select Preferred and Income Fund, Inc. (PSF). It's an interesting Closed End Fund and something worth investigating further.
PFF vs PSF
When comparing and two securities, the first place many start is performance. Some will compare distributions, but this is the wrong way to…
