How to Invest in a Fund Like PFF

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You basically just buy the fund and collect the dividends. You'd be responsible for rebalancing into or out of it as it changes in your overall asset allocations. The expense ratio is currently 0.46%. And since it's managed on an index, there are no additional management fees or load fees.

In this episode we discuss how NOT to choose investments and how to employ a good process to analyze an investment. We adopt the process of David Stein's 10 Questions To Master Successful Investing and apply it to PFF, an exchange-traded fund of preferred stock.

Links:

Investopedia Article -- "How Does Preferred Stock Work?": https://www.investopedia.com/articles/stocks/06/preferredstock.asp#:~:text=Preferreds%20are%20issued%20with%20a,of%20the%20preferred%20shares%20falls.

Ishares description of PFF: https://www.ishares.com/us/products/239826/ishares-us-preferred-stock-etf

Portfolio Visualizer's Asset Correlation Analyzer: https://www.portfoliovisualizer.com/asset-correlations

"Money for the Rest of Us: 10 Questions To Master Successful Investing": https://moneyfortherestofus.com/how-to-invest-book/

The 10 Questions To Ask When Considering An Investment:
1. What is it?
2. Is it an investment, a speculation, or a gamble?
3. What is the upside?
4. What is the downside?
5. Who is on the other side of the trade?
6. What is the investment vehicle?
7. What does it take to be successful?
8. Who is getting a cut?
9. How does it impact your portfolio?
10. Should you invest?