Dividends4Life: 7 Best Preferred Stock ETFs for 2017

7 Best Preferred Stock ETFs for 2017

Posted by D4L | Sunday, May 07, 2017 | | 0 comments »

Preferred stock ETFs are exchange-traded funds that specialize in preferred securities. Using preferred stock ETFs allows investors to spread their investments across multiple companies. Moreover, investors don’t need to pick and choose which company and which series of preferred shares to own. On top of that, ETFs trade just like regular stocks. By investing in preferred stock ETFs, investors can save the commissions paid to brokers if they were to buy dozens of preferred stocks themselves. However, like all ETFs, preferred stock ETFs charge a management fee. So when choosing preferred stock ETFs, it’s important to take into account their management expense ratio, or MER. Now, let’s take a look at the top preferred stock ETFs for 2017...

iShares S&P US Pref Stock Idx Fnd (ETF) (NYSEARCA:PFF) seeks to track the investment results of the S&P U.S. Preferred Stock Index. It has an expense ratio of 0.47% and an annual dividend yield of 5.65%. PowerShares Preferred Portfolio(ETF) (NYSEARCA:PGX) is an ETF that tracks the Bank of America Merrill Lynch Core Plus Fixed Rate Preferred Securities Index. It is currently yielding 5.68% and has a management expense ratio of 0.50%. First Trust Preferred Securities and Income ETF ETF (NYSEARCA:FPE) is quite different from the preferred stock ETFs we mentioned so far in that it is actively managed. SPDR Wells Fargo Prfd Stk ETF (NYSEARCA:PSK) is an exchange traded fund that seeks to provide investment results of the Wells Fargo Hybrid and Preferred Securities Aggregate Index. PowerShares Fin. Preferred Port. (ETF) (NYSEARCA:PGF) is an exchange traded fund based on the Wells Fargo Hybrid and Preferred Securities Financial Index. Investors interested in preferred stock ETFs but also want to get global exposure should take a look at iShares International Preferred Stock ETF (NYSEARCA:IPFF). For investors that don’t want financial sector exposure in their preferred stock ETF, they should check out Market Vectors ETF Trust (NYSEARCA:PFXF), also known as VanEck Vectors Preferred Securities ex Financials ETF.

Source: Income Investor

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