VanEck Preferred Securities ex Financials ETF (PFXF) Covered Calls
The VanEck Preferred Securities ex Financials ETF (PFXF) is a passively managed fund that provides exposure to U.S.-listed preferred securities, specifically excluding those issued by financial institutions. By focusing on non-financial issuers—such as utilities, telecommunications, and real estate firms—the fund offers a way to capture preferred-stock yields while avoiding the heavy financial-sector concentration typical of traditional preferred indices.
You can sell covered calls on VanEck Preferred Securities ex Financials ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PFXF (prices last updated Fri 4:16 PM ET):
| VanEck Preferred Securities ex Financials ETF (PFXF) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 17.41 | -0.14 | 17.21 | 18.48 | 575K | - | 2.0 |
| Covered Calls For VanEck Preferred Securities ex Financials ETF (PFXF) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 17 | 0.00 | 18.48 | -8.0% | -132.7% | |
| May 15 | 17 | 0.00 | 18.48 | -8.0% | -58.4% | |
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The VanEck Preferred Securities ex Financials ETF (PFXF) addresses a common investor concern in the preferred market: the dominance of large banks and insurance companies. By excluding these entities, PFXF allows investors to diversify their income-oriented portfolios with preferred securities from other stable, often regulated industries that possess their own unique credit profiles and yield characteristics.
Preferred securities act as a hybrid between equity and debt, typically offering higher dividends than common stock while maintaining a higher claim on assets. PFXF’s ex-financials mandate results in a portfolio that is less sensitive to systemic financial sector risks, providing a more balanced approach to income generation for investors seeking to supplement their fixed-income holdings.
Competitive Landscape
PFXF occupies a specialized niche in the income space. Its competitive positioning includes:
- Sector-Specific Exclusion: Unlike broad-market preferred ETFs, PFXF’s "ex-financials" rule significantly alters the risk-reward profile, reducing correlation to banking sector volatility.
- Yield Focus: The fund captures high-income opportunities in non-bank sectors that are often overlooked by diversified preferred funds.
- Peer Alternatives: PFXF competes with broad-market preferred ETFs like the iShares Preferred and Income Securities ETF and the Invesco Preferred ETF, which hold heavy allocations to banking and financial institutions.
Market Positioning and Future Trends
The demand for hybrid securities remains robust as investors seek "equity-like" dividends within a structure that carries traditional fixed-income seniority. As market participants look to diversify away from banking-heavy income sources, PFXF provides a transparent, index-based solution that is both liquid and efficient.
Looking ahead, this strategy remains a foundational component for portfolios that require diversification beyond the traditional financial services sector. Its focus on non-financial issuers makes it an essential tool for those building more resilient, multi-sector income streams in varying interest rate environments.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BW covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | PTON covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | USO covered calls | |
| 5. | SPY covered calls | 10. | TLT covered calls | 5. | WULF covered calls | |
Want more examples? PFSI Covered Calls | PG Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
