Cohen & Steers Preferred and Income Opportunities Active ETF (CSPF) seeks to generate high current income and capital appreciation through active management of preferred securities and income-producing investments. This actively managed income-focused ETF targets preferred stocks, convertible securities, and other yield-generating assets across global markets.
How It Works
CSPF employs active portfolio management by Cohen & Steers' experienced preferred securities team, selecting individual securities based on fundamental analysis rather than tracking an index. The fund focuses on preferred stocks, convertible bonds, and other income-producing securities, with portfolio managers adjusting allocations based on market conditions and relative value opportunities. Holdings are concentrated in higher-quality issuers with attractive dividend yields and potential for capital appreciation.
Key Features
- Managed by Cohen & Steers, a specialist with over 35 years of experience in preferred securities and income investing
- Active management allows tactical allocation adjustments during market volatility to capture relative value opportunities across income sectors
- Recently launched ETF with 0.00% expense ratio currently, though permanent fee structure not yet established for this new fund
Risks
- This ETF can lose value when interest rates rise, as preferred securities typically decline in price when rates increase, potentially causing 10-20% losses during rate hiking cycles
- Credit risk exists if underlying issuers face financial distress, as preferred securities rank below bonds but above common stocks in bankruptcy proceedings
- Active management risk means the fund may underperform passive preferred security indexes if manager security selection or timing decisions prove incorrect
Who Should Own This
Best suited for income-focused investors with medium risk tolerance seeking 5-10% portfolio allocation to preferred securities as a satellite holding. Appropriate for investors wanting professional active management of complex preferred securities markets with 3+ year time horizons who can accept interest rate sensitivity for higher current income than traditional bonds.