Apr. 21, 2014, 1:40 PM
- 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
Feb. 13, 2013, 7:14 PM
First Trust's new actively managed Preferred Securities and Income ETF FPE began trading Tuesday. FPE tries to generate income through holding preferred securities and income-producing debt securities, such as corporate bonds, high-yield securities and convertibles. This gives investors yield-generating options as an alternative route to the low interest rates in Treasury bonds. FPE comes with a high expense ratio of 0.85% compared to PFF (0.48%), PFXF (0.40%), SPFF (0.58%), PSK (0.45%), PGX (0.50%) and IPFF (0.55%). (PR)| Feb. 13, 2013, 7:14 PM | 1 Comment
Jul. 18, 2012, 11:07 AM
Jul. 17, 2012, 3:03 PM
Preferred stock investors (PFF) - currently in the enviable position of earning a sweet return as the supply of available shares dwindles - get another fund to choose from with the launch of the Global X SuperIncome Preferred ETF (SPFF), set up to track an S&P Index of the highest yielding preferreds in the U.S. and Canada.| Jul. 17, 2012, 3:03 PM
Jul. 8, 2012, 7:17 AM
Preferred stock (PFF) investors seeking an alternative or complement to their holdings might consider looking internationally. The IPFF is basically a play on Canadian preferred (73% of holdings), and the fund's European exposure is limited to the U.K. and Sweden. Its yield was 5.36% as of May 31.| Jul. 8, 2012, 7:17 AM