In a significant move within the investment landscape, Shufro Rose & Co. LLC has substantially increased its stake in the First Trust Preferred Securities and Income ETF (NYSEARCA:FPE), according to its latest Form 13F filing with the SEC. The New York-based firm reported a remarkable 37.9% surge in its holdings during the first quarter, signaling a strong conviction in the performance and stability of this income-focused exchange-traded fund.
Following this strategic acquisition, Shufro Rose & Co. LLC now commands ownership of 18,200 shares of FPE, having added an additional 5,000 shares to its portfolio during the reporting period. This increased investment translates into a substantial valuation of $320,000 for their FPE holdings at the close of the most recent quarter, underscoring the firm’s growing commitment to preferred securities as a key component of its investment strategy.
Shufro Rose & Co. LLC is not alone in recognizing the value proposition of the First Trust Preferred Securities and Income ETF. Other prominent hedge funds and institutional investors have similarly adjusted their positions, indicating a broader market trend towards this asset class. Notably, Bank of America Corp DE dramatically increased its position in FPE by 104.3% in the fourth quarter, accumulating a massive 7,093,224 shares valued at $125.55 million.
The institutional interest extends further, with Cetera Investment Advisers initiating a new, significant position in FPE during the first quarter, acquiring shares worth approximately $25.303 million. This new entry highlights the fund’s appeal to a diverse range of financial entities seeking income-generating opportunities within their diversified portfolios.
Furthermore, LPL Financial LLC demonstrated continued confidence in FPE by boosting its stake by 10.2% in the first quarter, bringing its total holdings to an impressive 14,362,757 shares, valued at $252.641 million. Integrity Wealth Advisors Inc. also made a notable entry, purchasing a new position worth approximately $22.183 million in the fourth quarter, reinforcing the growing institutional endorsement of the ETF.
Adding to the chorus of strong institutional backing, Ameriprise Financial Inc. expanded its investment in FPE by a substantial 79.0% in the fourth quarter, now holding 2,448,070 shares valued at $43.329 million. These collective movements by major financial players provide a compelling narrative of sustained and expanding interest in the First Trust Preferred Securities and Income ETF as a stable and attractive investment vehicle.
The First Trust Preferred Securities and Income ETF (FPE) itself is designed as an actively managed fund with a primary objective of generating income for its investors. It achieves this by strategically investing globally in preferred equities and a variety of income-producing debt instruments across the entire market capitalization spectrum. The fund’s performance reflects its investment strategy, having opened at $17.89 on Friday, with a one-year trading range between a low of $16.77 and a high of $18.23. Its 50-day moving average stands at $17.76, while its two-hundred-day moving average is $17.63, illustrating its consistent market presence and stability amidst fluctuating economic conditions.
The collective actions of these leading investment firms, from Shufro Rose & Co. LLC to Bank of America and LPL Financial, underscore a clear strategic focus on income-generating assets like FPE. Their increased allocations suggest a broader trend among institutional investors to fortify portfolios with instruments that offer both stability and consistent returns, particularly in the current economic climate.
