Invesco will launch the first variable rate preferred stock ETF May 1

The PowerShares Variable Rate Preferred Portfolio (VRP) will track the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index to gain exposure to capital weighted pool of preferred stocks and qualifying hybrid securities.

Lorraine Wang, Invesco PowerShares Global Head of ETF products and research, said in the statement earlier: “We believe VRP offers investors the potential for high current income and lower interest-rate sensitivity than traditional fixed-rate preferred securities. Dividends from variable-rate preferred securities also receive preferential tax rates compared to interest income, which makes them particularly attractive for top tax bracket investors.”

This would be the third preferred stock focused ETF for Invesco, with the Preferred Portfolio (PGX) and Financial Preferred Portfolio (PGF) returning 5 and 6% respectively since the start of 2014.

Other preferred share ETFs: PFF, CWB, PSK, PFXF, SPFF, IPFF, CNPF, FPE

Comments (2)
  • check-mate
    , contributor
    Comments (131) | Send Message
    You think they would print the expected yield
    12 May 2014, 05:38 PM Reply Like
  • User 16466242
    , contributor
    Comments (1123) | Send Message
    Good pt. This is something Goldman Sachs would do, sell investors (sheep) something GS doesn't fully disclose.
    8 Jan, 12:12 PM Reply Like
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