The iShares Preferred and Income Securities ETF (PFF) by BlackRock holds Strategy’s (MSTR), the largest publicly traded company holding bitcoin, Stretch (STRC) as its fourth largest position, with a $210 million allocation, equivalent to a 1.47% weighting as of Jan. 16.
PFF provides broad exposure to U.S. preferred stocks, securities that combine bond-like fixed income with equity ownership characteristics, offering investors a single-fund approach to pursuing income that can be competitive with high-yield bonds.
Stretch is a perpetual preferred equity product marketed by the company as short-duration, high-yield credit. It currently pays an 11% annual dividend, distributed monthly in cash, with the rate resetting each month to encourage trading near the $100 par value and to help limit price volatility.
The ETF also holds other MSTR perpetual preferred products, including Strife (STRF) with a $97.5 million allocation and a 0.69% weighting, MSTR common stock at $90 million or 0.64% and Stride (STRD) with a $73 million allocation representing 0.51%.
MSTR common stock is down 5% in pre-market trading, while STRC is trading slightly below par at $99.94.