BlackRock’s PFF ETF has $380 million worth of exposure to MSTR's preferred equities

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.