Goldman Sachs Asset Management has rolled out the Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF), marking its fifth ETF launch in 2024. This new fund targets high monthly income by investing in U.S. preferred stocks and hybrid securities, which currently offer yields between 6-7%, benefiting from the expected Federal Reserve rate cuts.

This strategy is designed to maximize yield while providing diversification benefits, as preferred stocks typically have lower correlations to core investment-grade fixed income. 

Following the fund’s introduction, GPRF has quickly accumulated nearly $20 million in inflows. The launch of GPRF complements Goldman’s ongoing expansion into municipal bond ETFs, adding to the firm’s growing portfolio, which now includes 43 ETFs.

Finsum: ETFs are an interesting way for investors to get exposure to preferred stock.