#interest-rate-risk

#interest-rate-risk

iShares Preferred and Income Securities ETF ( NYSEARCA:PFF) offers investors a 6.4% yield by investing in U.S. preferred stocks and income-producing securities. With $14.2 billion in assets and an 18-year track record since 2007, PFF provides monthly income through a diversified portfolio of preferred securities issued primarily by financial institutions and REITs. The fund charges a 0.45% expense ratio and maintains no leverage.

The term "7/6 ARM" breaks down like this: "7" = The number of years the interest rate stays fixed at the beginning of the loan. "6" = How often the rate can adjust after the fixed period - in this case, every 6 months.. This structure is part of a newer generation of ARMs that adjust twice a year after the initial fixed term. For example, a 7/1 ARM (common in the past) adjusted once per year, but most modern ARMs now use a 7/6 format.