La vendita allo scoperto per Invesco Preferred ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di Invesco Preferred ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

Invesco Preferred ETF (ARCA:PGX), Report sulle vendite allo scoperto

Invesco Preferred ETF

PowerShares Preferred Portfolio

Financial Services

Communication Services

Utilities

Real Estate

Other

Consumer Cyclical

Industrials

Consumer Defensive

Basic Materials

The fund generally will invest at least 80% of its total assets in fixed rate U.S. dollar-denominated preferred securities that comprise the underlying index. The underlying index is a market capitalization-weighted index designed to reflect the total return performance of the fixed rate U.S. dollar-denominated preferred securities market. It is non-diversified.

Jpmorgan Chase Pfd 'ee'

Jpmorgan Chase & Co Preferred Stock

Wells Fargo & Company, Series Z, 4.750%

JP Morgan, Preference Share L

Jpmorgan Chase And Co Ds Repstg T

Bank Of America Pfd 'Kk'

Bank of America Corp Pref B

At&t Inc

Jpmorgan Chase & Co

Wells Fargo & Co

Prosper Gold Corp

PELANGIO EXPLORATION by Pelangio Exploration Inc.

Pelangio Exploration Inc

No one stumbles upon <a href="https://www.benzinga.com/personal-finance/24/12/42301100/most-americans-dont-see-wealth-as-the-key-to-financial-success-heres-what-matters-more-to-59-of-them">financial success</a> by accident. Wealth is built through discipline, learning from mistakes, and sticking to an approach even when the market seems to go awry. Few investing strategies showcase this better than <a href="https://www.benzinga.com/personal-finance/25/03/44374276/reddit-explodes-over-dividend-math-how-much-would-the-annual-dividend-be-for-a-280k-investment-investors-debate-schds-future-growth">dividend</a> investing.
Dividend investing is the slow-and-steady journey of the financial world, paying consistently while also providing growth in the background, making it perfect for retirees, long-term investors, and anyone who wants passive income.
Don't Miss:
<ul>
<li>Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.</li>
<li>If there was a new fund backed by Jeff Bezos offering a <a href="https://www.benzinga.com/money/arrived-private-credit-fund">7-9% target yield with monthly dividends would you invest in it</a>?</li>
</ul>
Still, this approach can also be risky for some if they pick the wrong stocks. One military veteran and Reddit user recently shared his investing journey that started with him making costly mistakes to now earning him $10,000 in dividends per year.
With 13 years of investing experience, the poster, an enlisted service member, had to learn what works through trial and error. He says he tried to be smarter than the market early on, leading to him selling big winners too soon and holding onto losers for too long.
&#8220;I bought [General Electric] in my Roth at what I thought was a great price point of $14.50 or something. Had to [dollar-cost average] over several years to bring the cost basis down and missed out on having that money in better spots in the biggest bull market year I have been a part of,&#8221; he shared.
The 36-year-old mentioned that he&#8217;s gradually shifted his strategy to dividend shares now and his $296,570 portfolio already generates over $10,000 annually in dividends. Let&#8217;s see what dividend shares and ETFs the investor holds.
Trending: BlackRock is calling 2025 the year of alternative assets. <a href="https://www.benzinga.com/money/masterworks">One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.</a>
<h2 class="wp-block-heading">From Fatal Mistakes to $10,000/Year in Dividend Income—Reddit Investor Shares Top 10 Stocks and ETFs in His Portfolio</h2>
Abbott Laboratories
Healthcare company, Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) specializes in medical devices, pharmaceuticals, and nutritional products. With a 1.89% dividend yield per year, ABT is known for its diversified product portfolio and steady payments.
AbbVie
Pharmaceutical giant AbbVie (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) focuses on the research and development of therapies for various health conditions. Investors love ABBV because it has a strong yield, generating around 3.28% in dividends per year, and a stable pipeline of drugs.
ConocoPhillips
Energy giant ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) engages in the exploration and production of oil and natural gas. COP pays investors approximately 3.05% in annual dividends.
Duke Energy Corporation
Duke Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) is one of the largest electric power companies in the U.S. and is known for its stable revenue and consistent dividends. DUK generates around 3.62% in annual dividend yield.
Apple
Technology giant Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) has a modest dividend yield but a strong growth potential, and that&#8217;s why both growth and income-focused investors are attracted to this stock. APPL pays investors around 0.47% in dividends per year.
See Also: Have $200K saved?<a href="https://www.benzinga.com/money/have-200k-saved-heres-how-to-turn-it-into-lasting-wealth"> Here's how to turn it into lasting wealth</a>
Mastercard
Electronic payments company Mastercard (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) benefits from the ongoing shift toward cashless transactions. This, and the growth potential it offers makes MA a go-to stock for many investors. The company generates around 0.56% in annual dividends.
Verizon
Telecom Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) provides wireless and wireline services. With a dividend yield of approximately 6.25% annually, VZ has a stable cash flow, making it a favorite among individual stock investors.
Altria Group
Tobacco giant Altria Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) is mainly known for the Marlboro brand. MO offers a high dividend yield of 7.21% per year, appealing to those seeking higher passive income.
Global X SuperDividend ETF
Tracking the performance of the Indxx SuperDividend U.S. Low Volatility Index, Global X SuperDividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIV#NYSE">DIV</a>) focuses on high dividend yields and is known to retain low volatility. DIV generates around 11.37% in dividend yield per year.
Invesco Preferred ETF
Invesco Preferred ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGX#NYSE">PGX</a>) invests mainly in preferred stocks, which are hybrid securities offering features of both stocks and bonds.​ Paying investors around 5.85% in annual dividends, PGX is a favorite for those who seek higher income.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/money/gbr-savings-by-age">If You're Age 35, 50, or 60: Here&#8217;s How Much You Should Have Saved Vs. Invested By Now</a></li>
<li>Many are using retirement income calculators to check if they&#8217;re on pace —<a href="https://www.benzinga.com/money/how-do-i-calculate-my-retirement-income-adv"> here&#8217;s a breakdown on what&#8217;s behind this formula.</a></li>
</ul>

Personal Finance

AAPL

ABBV

From Rookie Mistakes To $10K/Year In Dividends – Military Veteran Who 'Made A Few Great Plays' Shares His 10 Biggest Bets

Last week, the PowerShares DWA Tactical Multi-Asset Income Portfolio (NASDAQ: DWIN) joined what is becoming a long line of exchange traded funds that use of the ETF of ETFs approach.

	While the PowerShares DWA Tactical Multi-Asset Income Portfolio&#39;s status as an ETF of ETF is not unique per se, what is notable about this rookie fund is its commitment to income, a hallmark of multi-asset ETFs.

	DWIN follows the Dorsey Wright Multi-Asset Income Index. That index &ldquo;invests its assets in the shares of other, underlying exchange-traded funds eligible for inclusion in the Index, rather than in securities of individual companies. The Index is designed to select investments from a universe of income strategies with the criteria for inclusion based on a combination of relative strength and current yield,&rdquo;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=DWIN&amp;title=powershares-dwa-tactical-multi-asset-income-portfolio"> according to PowerShares</a>.

	DWIN holds five other PowerShares ETFs, spanning asset classes such as common dividend stocks, emerging markets bonds and Build America bonds. The diversified approach to generating income could help mitigate risk at a time when many investors are still hungry for yield.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/03/7719392/dividend-yields-are-doing-something-rare">Dividend Yields Are Doing Something Rare</a>

	&ldquo;In a quest for higher income, many investors have taken on additional risk in the form of master limited partnerships (MLPs), high yield bonds and real estate investment trusts (REITs). These non-traditional sources of income may offer greater yields than aggregate bond portfolios, but can leave investors vulnerable to shifting market momentum &ndash; underscoring the need for credit diversification. By diversifying a non-aggregate income allocation across a broad range of investments with disparate drivers of return, investors can potentially enhance performance, while diluting the impact of market volatility,&rdquo; said PowerShares <a href="http://www.blog.invesco.us.com/income-allocation-why-think-tactically">in a recent note</a>.&nbsp;

	There is something to DWIN&#39;s approach to income because figuring out what income-generating asset class will lead at the start of a given year is not easy. As PowerShares data indicate, since 2007, only two income asset classes have been annual leaders on multiple occasions: MLPs and preferred stocks.

	DWIN has preferreds covered with the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) as its largest holding. PGX accounts for 21 percent of DWIN&#39;s weight while the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>) is DWIN&#39;s smallest holding at just under 19 percent.

	In the event of all out market chaos, DWIN can protect investors as well.

	DWIN&#39;s &ldquo;portfolio can even convert to up to 80% US Treasuries in cases of extreme market turbulence &ndash; offering the potential for upside participation and downside risk mitigation,&rdquo; notes PowerShares.

Long Ideas

Bonds

Dividends

Specialty ETFs

New ETFs

Markets

Trading Ideas

ETFs

PowerShares Emerging Markets Sovereign  Portfolio

A New ETF With Multiple Income Avenues

The ETF of ETFs structure is increasingly popular and with interest rates still low, multi-asset exchange-traded funds could regain some luster with income investors. So the PowerShares DWA Tactical Multi-Asset Income Portfolio (NASDAQ: DWIN) could prove to be one of this year&#39;s more well timed ETF launches.
The PowerShares DWA Tactical Multi-Asset Income Portfolio, which debuted Wednesday, uses a similar approach to that of the PowerShares DWA Tactical Sector Rotation Portfolio (NASDAQ: <a class="ticker" href="/stock/dwtr#NASDAQ">DWTR</a>), one of the most successful new ETFs to come market last year.
<h3>A Closer Look AT DWIN</h3>
DWIN follows the Dorsey Wright Multi-Asset Income Index. That index &ldquo;invests its assets in the shares of other, underlying exchange-traded funds eligible for inclusion in the Index, rather than in securities of individual companies. The Index is designed to select investments from a universe of income strategies with the criteria for inclusion based on a combination of relative strength and current yield,&rdquo;<a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=DWIN&amp;title=powershares-dwa-tactical-multi-asset-income-portfolio"> according to PowerShares</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/03/7665207/reit-etfs-ready-for-sector-status">REIT ETFs Ready For Sector Status</a></bzrelatedlink>
Like DWTR, DWIN is comprised of five other PowerShares ETFs. Holdings in the new multi-asset ETF are as follows: The PowerShares Preferred Portfolio(ETF) (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), PowerShares Build America Bond Portfolio (NYSE: <a class="ticker" href="/stock/bab#NYSE">BAB</a>), PowerShares High Yld. Dividend Achv(ETF) (NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>), PowerShares Global Short Term High Yield Bond Portfolio (NYSE: <a class="ticker" href="/stock/pghy#NYSE">PGHY</a>) and the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>).
&ldquo;The last 30 years have seen a strong bull market in fixed income, suppressing rates down to historically low levels. This phenomenon has caused investors to search for yield in a variety of untraditional asset classes including high yield, MLPs, and bank loans. While higher yields have been realized, investors also have realized an increase in volatility. A strategy that monitors these segments systematically may help mitigate some of this volatility while potentially maintaining higher income levels,&rdquo; said PowerShares <a href="http://www.prnewswire.com/news-releases/invesco-powershares-launches-dwa-tactical-multi-asset-income-portfolio-dwin-300233875.html">in a statement</a>.
Beyond common stocks, multi-asset ETFs can hold assets ranging from junk bonds to REITs to MLPs to preferred stocks. A lineup featuring assets like that not only helps investors generate income, but also reduces exposure to the intense correlations seen throughout equity markets.
In addition, non-investment grade bonds are viewed as less sensitive to interest rate increases, and dividends on preferred stocks are almost a sure bet, because a company that does not pay a previously agreed to dividend on a preferred issue risks harm to its credit rating. Investors enjoy the high yields and the close to guaranteed income offered by preferreds. However, preferred issues are vulnerable in a rising interest rate environment, and the reality is U.S. interest rates only have one way to go and it is not lower.
DWIN charges 0.69 percent per year, or $69 for every $10,000 invested. 
Image Credit: <a href="https://pixabay.com/en/sunset-girl-balloon-shadow-1112644/">Public Domain</a>

News

DWTR

PGHY

A New Muti-Asset ETF Of ETFs

One way or the other, the Federal Reserve will be making a decision on interest rates on Thursday. Either benchmark U.S. interest rates are going to continue hovering near or zero or, as some market participants expect, those rates will rise by 25 basis points.

	Examining recent flows data for select rate-sensitive exchange traded funds is a task unlikely to give investors a clear idea regarding what the Fed is going to decide. For example, the high-yields and bond-like properties of preferred stocks would seemingly make that asset class vulnerable to higher interest rates, but investors have recently been pouring money into the iShares U.S. Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) and the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), among&nbsp;<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5837534/preferred-stock-etfs-provide-potential-fed-clues">other preferred ETFs</a>.

	Conversely, investors have been far less sanguine about utilities ETFs. In fact, they have been downright skittish as highlighted by the $549.3 million in month-to-date departures from the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the largest utilities ETF.
<h3>
	Why This Makes Sense</h3>

	Investors&#39; angst as it pertains to the utilities ahead of potentially hawkish moves by the Fed makes sense. In the case of XLU, it is the most negatively correlated to interest rates of the nine sector SPDR ETFs. History confirms the laggard status of utilities stocks following interest rate increases.

	&quot;Telecom was the worst or second worst performing sector in terms of average cumulative returns in 6 out of the 12 months following Fed liftoff,&rdquo; said Bank of America in a&nbsp;<a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/09/5834437/dont-mess-with-these-etfs-if-interest-rates-rise#ixzz3lxABw4Eu">note out last week</a>. The bank added &ldquo;utilities were lackluster throughout the 12 months after Fed liftoff.&rdquo;

	Investors&#39; September disdain for utilities ETFs has not been limited to XLU. The Vanguard Utilities ETF (NYSE: <a class="ticker" href="/stock/vpu#NYSE">VPU</a>) and the iShares U.S. Utilities ETF (NYSE: <a class="ticker" href="/stock/idu#NYSE">IDU</a>) have lost $30 million combined this month.

	Some traders are even outright betting against utilities ETFs. Short interest in XLU was recently as high as 36 percent of shares outstanding, according to AltaVista Research, the&nbsp;<a href="http://www.etfresearchcenter.com/archives/Sector_SPDR_Analyzer_090115_ERC.pdf">third-highest total</a> among the nine SPDRs.

	Interestingly, utilities stocks are inexpensive relative to the S&amp;P 500, a rarity for the ultra-defensive sector that usually forces investors to pay-up for the luxury of that defensive posture. XLU&#39;s estimated 2015 price-to-earnings ratio is 15.5 compared to 16.7 for the S&amp;P 500, according to AltaVista.

	&ldquo;Environmental regulations and distributed generation represent dual threats to profitability-- witness the declining trend in Return on Equity and margins over the past few years, which may appear small but are forecast to result in less than 1% earnings growth between 2010-15E. That said, the P/E ratio has come off its highs from earlier this year, so the sector could get another look from value and income value investors, especially if the Fed delays raising,&rdquo; said AltaVista of XLU.

	The research firm has a Neutral rating on XLU.

Sector ETFs

Short Ideas

Intraday Update

iShares Trust Dow Jones US Utilities Sector Index Fund

iShares S&P US Preferred Stock Index Fund

Ahead Of The Fed, Investors Ditch Utilities ETFs

Income investors embraced preferred stocks, in large part, because of high yields, but as the spike in Treasury yields earlier this year and in 2013 taught investors, high-yielding assets are <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5725602/just-as-it-sort-of-perked-up-a-dividend-etf-lost-more-money">vulnerable to rising rates</a>.

	Preferred stocks are often viewed as hybrid securities, displaying both bond- and equity-like traits, and reside higher on the totem pole than do common stocks in terms of investor claims in the event of issuer default. As is the case with bonds, preferreds are sold at par value, or offer a fixed or floating rate of income, so prices fluctuate with interest rates, wrote William Scapell, director of fixed income and preferred securities portfolio manager at Cohen &amp; Steers, for <a href="http://www.investmentnews.com/article/20150524/REG/305249994/preferred-securities-seen-as-attractive" target="_blank">InvestmentNews</a>.
<h3>
	ETFs To Play</h3>

	Legacy preferred ETFs, including the iShares U.S. Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) and the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), sport sizable enough yields that these funds qualify as &ldquo;high-yield&rdquo; instruments, in turn making these ETFs and others like them vulnerable to higher interest rates. PFF and PGX carry 30-day SEC yields of 5.35 percent and 5.94 percent, respectively.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5832788/these-sector-etfs-could-shine-after-a-rate-hike">These Sector ETFs Could Rise After A Rate Hike</a>

	That is to say if investors were betting that the Federal Reserve will announce higher interest rates following the conclusion of its two-day meeting Thursday, preferred stocks and ETFs <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/09/5834437/dont-mess-with-these-etfs-if-interest-rates-rise">would not be the place</a> investors would be running to. However, that is what they are doing.

	Since the start of the third quarter, PFF has added just over $350 million in new assets. PGX has seen $49.6 million of inflows over the past 90 days, placing it thirteenth among all PowerShares ETFs, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

	The fourth-place ETF on that PowerShares list is the PowerShares Variable Rate Preferred Portfolio Fund (NYSE: <a class="ticker" href="/stock/vrp#NYSE">VRP</a>), which makes sense because VRP is the one preferred ETF <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5782521/the-preferred-preferred-etf-for-fed-shenanigans#ixzz3llHVF2RN">designed specifically with </a>higher interest rates in mind.

	&ldquo;Debt securities with floating or variable rates may help protect investors from a rising rate environment. Even if maturities extend beyond a call date, interest rate risk can be much lower and is limited to the time until the next rate reset,&rdquo; according to a&nbsp;<a href="http://www.blog.invesco.us.com/extension-risk-when-interest-rates-rise-fixed-income-investing">new research note</a> from PowerShares.

	VRP, which has a 30-day SEC yield of 5.16 percent, has added $120.4 million in new asset over the past three months. With that yield, VRP is certainly in the high-yield conversation, so its recent burst of asset-gathering proficiency cements the notion that investors are embracing preferred ETFs at a time when it would appear risky to do so.

	Investors are also embracing actively managed preferred ETFs. In the current quarter, the First Trust Preferred Securities and Income ETF (NYSE: <a class="ticker" href="/stock/fpe#NYSE">FPE</a>) has taken in $86.4 million of its $349.6 million in assets under management.

Federal Reserve

Preferred Stock ETFs Provide Potential Fed Clues

Among the many genres of exchange traded funds that have benefited from years of the Federal Reserve&#39;s near zero interest policy are preferred stock funds.

	Currently, there are about 10 such funds with over $20 billion in combined assets under management on the market. Three of those ETFs combine for over $17 billion in assets, but some more focused offerings have also developed legitimate followings. That group includes the PowerShares Variable Rate Preferred Portfolio Fund (NYSE: <a class="ticker" href="/stock/vrp#NYSE">VRP</a>).
<h3>
	VRP</h3>

	VRP, which tracks the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index, is just 15 months old and has $334 million in assets under management, making it one of the most successful ETFs, fixed income or otherwise, to come to market last year. Preferreds and the funds that hold them are viewed as vulnerable to hawkish changes in Fed policy, but VRP has the tools to help income investors stick with preferreds while weathering interest rate increases.

	&ldquo;Debt securities with floating or variable rates may help protect investors from a rising rate environment. Even if maturities extend beyond a call date, interest rate risk can be much lower and is limited to the time until the next rate reset,&rdquo; according to a&nbsp;<a href="http://www.blog.invesco.us.com/extension-risk-when-interest-rates-rise-fixed-income-investing">new research note</a> from PowerShares.

	Related Link:<a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/08/5781116/fed-rate-hike-expectations-what-four-big-banks-are-sayin"> Fed Rate Hike Expectations: What Four Big Banks Are Saying</a>

	Income investors embraced preferred stocks, in large part, because of high yields, but as the spike in Treasury yields earlier this year and in 2013 taught investors, high-yielding assets are <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5725602/just-as-it-sort-of-perked-up-a-dividend-etf-lost-more-money">vulnerable to rising rates</a>.

	As its name implies, VRP holds preferred stocks with variable interest rates, making the fund less vulnerable to changes in interest rates. Variable rate preferreds offer another advantage: Mitigation of extension risk.

	&ldquo;Extension risk can be prevalent in securities with imbedded call features and fixed coupons, which is often the case in mortgage-backed, municipal, and fixed preferred securities. In my view, too many investors think of their preferred &#39;stocks&#39; as equity-like, ignoring the very bond-like risks that these hybrid securities typically carry in a rising rate environment,&rdquo; according to PowerShares.

	Often times, embracing a fund with lower interest rate risk means sacrificing yield. That is the case with VR. The ETF&#39;s 30-day SEC yield is almost 5.1 percent compared to just over 5.9 percent on the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), a more traditional preferred ETF. Obviously, 5.1 percent is less than 5.9 percent, but the yield on VRP is still far more enticing than what an investor will get with U.S. Treasurys.

	Of course, VRP&#39;s 5.1 percent 30-day SEC yield is not free lunch in terms of credit risk, but 56 percent of the ETF&#39;s holdings are rated A or BBB by Standard &amp; Poor&#39;s. Apparently, someone likes VRP&#39;s story because the ETF has hauled in $223.3 million of its $334 million in assets this year, <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/tools/flow-trend-tracker">according to issuer data</a>.

The Preferred Preferred ETF For Fed Shenanigans

February was a volatile month for interest rates and asset classes traditionally linked to machinations in the bond markets. The CBOE Interest Rate 10 Year Note (INDEX: TNX) spiked from a low of 1.67 percent to a high of 2.00 percent last month amid a strong bid for stocks.

	This spike higher in rates led to a selloff in the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>), Vanguard REIT Index Fund (NYSE: <a class="ticker" href="/stock/vnq#NYSE">VNQ</a>) and even the Utility Select Sector SPDR ETF (Utilities SPDR (ETF)) (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>). However, the asset class that shrugged off this macro-economic headwind and continued to new highs is preferred stocks.
<h3>
	What Are Preferred Stocks?</h3>

	Preferred stocks are known as a hybrid instrument that carry qualities of both equity and debt securities. These shares are higher on the capital structure than common stock owners and typically pay a hefty yield, which is where their sensitivity to interest rates is upheld.
<h3>
	iShares U.S. Preferred Stock ETF</h3>

	The iShares S&amp;P US Pref Stock Idx Fnd (ETF) (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) is the largest ETF in this space with over $12.7 billion in total assets. PFF invests in a diversified basket of over 300 preferred stocks, which are primarily focused in the financial, banking and real estate sectors.
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	&nbsp;

	PFF has gained 11 percent in total return over the last year and just recently touched new 52-week highs. This ETF also sports a 30-day SEC yield of 5.61 percent and dividends are paid monthly to shareholders.
<h3>
	PowerShares Preferred Portfolio</h3>

	Another strong contender in this category is the PowerShares Preferred Portfolio(ETF) (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>). This ETF focuses on a more concentrated mix of 213 preferred stocks, of which 88 percent are financial-based companies. The current yield on PGX is 5.90 percent.

	PFF carries an expense ratio of 0.47 percent, while PGX is slightly higher at 0.50 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/pressreleases/15/03/b5294833/amsurg-declares-quarterly-preferred-stock-dividend">AmSurg Declares Quarterly Preferred Stock Dividend</a></bzrelatedlink>
<h3>
	What Makes Preferred Stock ETFs Unique</h3>

	One of the distinct qualities of preferred stock ETFs is that their returns don&rsquo;t mirror a traditional equity or bond index. PFF, for example, has a beta to the S&amp;P 500 Index (INDEX: SPX) of just 0.24. This may be an attractive quality for income-seekers looking to diversify their portfolio in non-correlated asset classes.

	Disclosure: At the time this article was written, David Fabian and clients of FMD Capital Management owned PFF.

iShares Trust Barclays 20+ Year Treasury Bond Fund

Preferred Stock ETFs Press Higher, Ignore Interest Rate Spike

Alright, so what follows is data pertaining to just a couple of ETFs from just one issuer, Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit.

	While it can be argued that what is going on with one ETF issuer is not happening with another, it also must be noted PowerShares is no small shop.

	This is the fourth-largest U.S. ETF sponsor with nearly $77 billion in assets under management. That is more than PIMCO and Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>) combined, and multiplied by three.

	More importantly, recent inflow data from PowerShares paints an accurate picture of the current investing environment. Inflows to two of the most prominent PowerShares ETFs – the PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>) and the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) – highlight at least two things.

	First, investors continue to embrace low volatility equity fare, something that has been <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3447304/risk-on-rally-these-etfs-say-no">made obvious by the returns of various domestic sector ETFs</a>. Second, the death of high-yield bonds has again been greatly exaggerated. BKLN indicates as much.

	BKLN, the dominant senior loan ETF, has raked in $1.45 billion in new assets this year, <a href="http://www.invescopowershares.com/flows/">according to PowerShares data</a>. That is impressive under any circumstance, but more so when considering many an obituary has been written on junk bond ETFs this year.

	BKLN, now home to $2.96 billion in assets, allocates a combined 84 percent of its weight to bonds rated either BB or B by Standard &amp; Poor's.

	SPLV, the largest low volatility ETF, has not been a slouch when it comes to attracting assets in 2013. That ETF attracted nearly $750 in inflows as of March 25, according to PowerShares. The fund, which was up 7.75 percent year-to-date at the start of trading today, now has almost $4.2 billion in assets under management.

	SPLV and BKLN have 30-day SEC yields of 2.94 percent and 3.86 percent, but PowerShares data pertaining to other funds further underscore the notion that low interest rates are driving investors to ETFs offering decent yields.

	For example, the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) ranks fourth among PowerShares in terms of year-to-date inflows at almost $275 million. PGX has a 30-day SEC yield of almost 6.4 percent. The PowerShares Financial Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgf#NYSE">PGF</a>) ranks tenth among the firm's ETFs with 2013 inflows of about $106.5 million. PGF's 30-day SEC yield is 6.43 percent.

	In further anecdotal evidence that low volatility and dividends are sources of allure for investors, three of the five most searched ETFs on the PowerShares web site last week were BKLN, SPLV and the PowerShares S&amp;P 500 High Dividend Portfolio (NYSE: <a class="ticker" href="/stock/sphd#NYSE">SPHD</a>), <a href="https://twitter.com/PowerShares">according to the firm's Twitter feed</a>.

	SPHD tracks a fitting index for the current environment, that being the S&amp;P 500 Low Volatility High Dividend Index. The ETF, which debuted in October, has a 30-day SEC yield of 3.79 percent and $83.1 million in assets.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Broad U.S. Equity ETFs

BKLN

PowerShares Exchange Traded Fund Financial Preferred Portfolio

SCHW

SPHD

PowerShares S&P 500 Low Volatility Portfolio

SPLV

Inflows to These ETFs Are Telling

Highlighting investors' affinity for low volatility ETFs, Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF issuer, said Tuesday the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) lead all PowerShares ETFs in terms of 2012 inflows.

The PowerShares S&amp;P 500 Low Volatility Portfolio, arguably the king of low volatility ETFs, raked in over $2.1 billion in fresh assets last year to end the year with nearly $3.1 billion in assets under management, <a href="http://www.invescopowershares.com/pdf/P-CONN-MR-1.pdf">according to PowerShares data</a>. SPLV, which debuted in May 2011, had almost $3.3 billion in AUM as of February 5, 2013.

SPLV is comprised of the 100 S&amp;P 500 members with lowest trailing 12-month volatility. Not surprisingly, that means the ETF is heavy on utilities and consumer staples names as those sectors account for almost 31 percent and nearly 27 percent of the fund's weight. 

Top SPLV holdings currently include Clorox (NYSE: <a class="ticker" href="/stock/clx#NYSE">CLX</a>), Kimberly-Clark (NYSE: <a class="ticker" href="/stock/kmb#NYSE">KMB</a>) and General Mills (NYSE: <a class="ticker" href="/stock/gis#NYSE">GIS</a>).

Underscoring the notion that investors' thirst for yield was strong last year, seven of the top-10 PowerShares ETFs in terms of 2012 inflows have yields that can be considered decent. SPLV currently sports a 30-day SEC yield of three percent. 

The PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>) and the PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>), both of which hauled more than $1 billion in assets last year, each have 30-day SEC yields of 4.08 percent.

The PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), which has a 30-day SEC yield of 6.08 percent, was also among the top-10 asset gatherers for PowerShares in 2012.

The PowerShares DB US Dollar Bullish Fund (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>) was by far the PowerShares hit by the highest level of outflows as investors pulled $1.16 billion from the U.S. Dollar Index tracking ETF last year. UUP ended 2012 with $689 million in assets, but that number has since fallen to $634 million, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=UUP">according to PowerShares data</a>.

For more on ETFs, click

Emerging Market ETFs

Currency ETFs

After-Hours Center

PowerShares DB US Dollar Index Bullish Fund

Low Vol ETF Leads PowerShares 2012 Inflows

Prior to Monday's market rally, fears of the fiscal cliff had been wreaking havoc on even the most conservative dividend-paying sectors. In the process, even stodgy <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3095162/fiscal-cliff-fears-are-hammering-these-etfs">telecom and utilities ETFs were taken to the woodshed</a>. 

With concern running high that a higher dividend tax rate could prompt many companies to forgo dividend increases, the negative price action for these dividend sectors was understandable. Worse yet, that negativity was widespread throughout the universe of decent-to-high yield securities. 

In other words, it was not surprising to see ETFs tracking preferred stocks get caught in the downdraft. Take the case of the $10.5 billion iShares S&amp;P U.S. Preferred Stock Index Fund (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>). PFF has a 30-day SEC yield of 5.71 percent and a beta against the S&amp;P 500 of just 0.46, <a href="http://us.ishares.com/product_info/fund/overview/PFF.htm?fundSearch=true&amp;qt=PFF">according to iShares data</a>. Those are two factors that have almost certainly increased the allure of this ETF in a yield-starved environment.

However, those traits did not prevent the fund from tumbling as fiscal cliff fears rose. The problem: Probably and excessive weight to financial services stocks. In the case of PFF, various financial services names account for approximately 85 percent of the fund's weight. 

PFF's exposure to European banks has made matters all the more difficult recently, but the struggles of this ETF and its rivals obfuscate a critical fact. That being the hybrid nature of preferred stocks. Preferred stocks are not common stocks, nor are they completely debt products either. Rather, preferred stocks share traits of both bonds and common stocks. 

The "a ha" moment as it pertains to the fiscal cliff comes from realizing that a company that is paying a preferred dividend had bigger make that payment or risk damage to its credit rating. There is one of the bond aspects of <a href="http://www.zennioptical.com/.">http://www.zennioptical.com/.</a> A company that is consistently in arrears on preferred dividend payments risks a lower credit rating and that leads to higher borrowing costs. The way of explaining this scenario to a second-grader is: "Even if the fiscal cliff comes to pass, why would any company risk damage to its credit rating just because the dividend tax went up?" It is not a good trade.

With that in mind, here are some of the more obscure preferred stock ETFs that might prove durable even in a post-fiscal cliff world.

Global X Canada Preferred ETF (NYSE: <a class="ticker" href="/stock/cnpf#NYSE">CNPF</a>)
The Global X Canada Preferred ETF is the first ETF devoted to Canadian preferred stocks, an asset class that should prove desirable because Canadian banks are far less controversial than their U.S. counterparts. That does lead into an important point and that is CNPF is not all that different from a U.S.-focused preferred ETF in that financials account for over 70 percent of this ETF's weight. 

Energy and telecom names represent most of the rest of CNPF's sector allocations. The thesis here is simple: International stocks <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3096834/international-dividend-etfs-a-fiscal-cliff-survival-tool">have shareholders in other countries that will not be affected by the fiscal cliff</a>. Meaning international dividend ETFs, of which CNPF is one, could prove to be an excellent fiscal cliff survival tool. Plus, CNPF pays a monthly dividend.

PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>)
No, it is not fair to refer to an ETF with over $2 billion in assets under management as "obscure," but the PowerShares Preferred Portfolio is somewhat overlooked in comparison to some of its larger rivals. PGX amounts to a good news/bad news type of ETF. Follow along.

Good news: 30-day SEC yield of 6.52 percent. Bad news: More than 91 percent allocated to financials. Good news: PGX pays a monthly dividend. Bad news: A third of the ETF's holdings have non-investment grade ratings. The good news is that PGX can be summed up with two positive tidbits investors need to acknowledge. The overall credit quality of its portfolio is superior to that of PFF's and the ETF's beta is far below that of its iShares rival.

Market Vectors Preferred Securities ex Financials ETF (NYSE: <a class="ticker" href="/stock/pfxf#NYSE">PFXF</a>)
The Market Vectors Preferred Securities ex Financials ETF is a case study in how a new ETF that is entering an arena fraught with competition can be successful. Following its July debut, PFXF has $92.3 million in AUM and those inflows have likely been driven by two simple factors. First, PFXF has an expense ratio of 0.4 percent, meaning it is the cheapest preferred ETF on the market.

Second, the fund is not excessively weighted to bank stocks. The exclusion of traditional banking names means a less volatile fund. Simply put, PFXF is doing something right. Since its debut, the fund has outperformed all of the other ETFs highlighted here.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Events

CNPF

PFXF

Preferred Stock ETFs: Fiscal Cliff Rebound Play?

It may be data from just one issuer, but September inflows to Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares ETF arm highlight an already known trend: Investors are pouring cash <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/3015616/the-indomitable-rise-of-dividend-etfs">into income-oriented funds</a> at a rapid pace.

Of the 10 PowerShares ETFs that saw the largest inflows in September, <a href="http://www.invescopowershares.com/pdf/P-CONN-MR-46.pdf">four are clearly income products</a>. A case can be made that a fifth, the wildly popular PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>), is a dividend ETF as well. SPLV, the largest low volatility ETF on the market, allocates a combined 75 percent of its weight to consumer staples, utilities and health care names. Those are all sectors prized by income investors.

SPLV also has a 30-day SEC yield of just over three percent. By comparison, the 30-day SEC yield on the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) is just 1.98 percent. SPLV ranked fourth among PowerShares ETFs in terms of September inflows. 

The PowerShares DB Commodity Index Tracking Fund (NYSE: <a class="ticker" href="/stock/dbc#NYSE">DBC</a>) lead the way in terms of September inflows to PowerShares ETFs with $322 million. The PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>), one of the most <a href="http://www.benzinga.com/markets/bonds/12/10/2995308/etfs-with-amazing-asset-growth">prodigious gatherers of assets this year</a>, raked in $202 million to end September with $927 in AUM, according to PowerShares. Money has kept flowing to BKLN, which now has almost $1.2 billion in assets. BKLN, which pays a monthly dividend, has a 30-day SEC yield of 4.4 percent.

The PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) was fifth-best among the firm's ETFs in terms of gaining assets in September. PGX haulded in $61 million in cash to end September with $1.99 billion in assets. As further proof the yield chase is still on and going strong, PGX is now close to $2.1 billion in AUM. PGX has a 30-day SEC yield of 6.43 percent and also pays a monthly dividend.

Not surprisingly, the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>) appears on the list as well. PCY, the second-largest ETF offering exposure to dollar-denominated emerging markets sovereign debt, <a href="http://www.benzinga.com/markets/bonds/12/10/3036081/investors-pouring-cash-into-em-bond-funds">has been prime beneficiary</a> of robust inflows to EM bond funds.

PCY hauled in $55 million in September to finish the month with $2.27 billion. As of October 31, PCY had over $2.8 billion in assets. Another monthly dividend payer, PCY has a 30-day SEC yield of four percent.

The 30-day SEC yield on the PowerShares Insured National Municipal Bond Portfolio (NYSE: <a class="ticker" href="/stock/pza#NYSE">PZA</a>) is just 2.98 percent, investors still poured $50 million into the ETF in September. PZA ended the month with $855 million in assets. October has been even better as PZA now has $931.7 million in assets.

The other ETFs to make the list of top-10 PowerShares asset gainers in September included two commodities funds, the PowerShares India Portfolio (NYSE: <a class="ticker" href="/stock/pin#NYSE">PIN</a>) and the PowerShares DWA Technical Leaders Portfolio (NYSE: <a class="ticker" href="/stock/pdp#NYSE">PDP</a>).

For more on dividend ETFs, click <a href="http://www.benzinga.com/markets/bonds/12/10/3036081/investors-pouring-cash-into-em-bond-funds">here</a>.

Commodities

PowerShares DBmmodity Index Optimum Yield Diversified Fund

PowerShares DWA Technical Leaders Portfolio

PowerShares Insured Municipal Bond Portfolio

Flows For This ETF Issuer Show Investors Love Dividends

Van Eck's Market Vectors unit will introduce the first non-financials preferred stock ETF today when the Market Vectors Preferred Securities ex Financial ETF (NYSE: <a class="ticker" href="/stock/pfxf#NYSE">PFXF</a>) starts trading. In a yield-starved environment, <a href="http://www.benzinga.com/markets/bonds/12/07/2747462/2-new-preferred-etfs-to-debut-tuesday">ETFs tracking preferred stocks have proven popular with invetors</a>, though many of these funds are excessively weighted to financial services names.

For example, the $9.3 billion iShares S&amp;P U.S. Preferred Stock Index Fund (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) allocates about 76 percent of its weight to financials while the $1.8 billion PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) devotes more than 92 percent of its weight to financials.

Not only will the Market Vectors Preferred Securities ex Financial ETF be the first U.S.-listed ETF to focus on preferred stocks issued by non-financial services firms, it will also be the least expensive preferred ETF with an expense ratio of 0.4 percent.

PFXF's index does not classify real estate investment trusts (REITs) as financial services. As such, REITs represent nearly 31 percent of the new ETF's weight. Electric companies account for 26.3 percent of the fund's weight while automotive manufacturers receive an allocation of almost 12 percent. Telecommunications, insurance and energy stocks combine for almost 19 percent.

Home to 68 stocks, PFXF has a current yield of 6.78 percent. Just over 40 percent of the ETF's holdings are rated BBB while another 35.3 percent are not rated. An issuer's ability to pay dividends on its preferred shares is an essential component to the issuer's overall credit rating. Missing payments on preferred dividends can lead to lower credit ratings and higher borrowing costs for the issuing firm.

Investors have embraced preferred stocks and ETFs because a company's preferred shares often feature higher yields than its common shares and senior debt. Preferred stocks fall in between senior debt and common stock in a company's capital structure. 

PFXF's top-10 holdings include preferreds issued by General Motors (NYSE: <a class="ticker" href="/stock/gm#NYSE">GM</a>), Apache (NYSE: <a class="ticker" href="/stock/apa#NYSE">APA</a>), United Technologies (NYSE: <a class="ticker" href="/stock/utx#NYSE">UTX</a>) and Ford (NYSE: <a class="ticker" href="/stock/f#NYSE">F</a>). 

The concept of a non-financials preferred ETF might prove appealing to investors and not just because of the robust yield. Over the past five years, financials have been the most volatile sector of the 10 sectors tracked within the S&amp;P 500. The three-year annualized standard deviation for financial preferreds is 15.62 percent compared to 8.34 percent for non-financial preferreds, according to Van Eck data. 

Prior to Basel III and new additions to the Dodd-Frank Act, large banks were allowed to count trust preferred securities as part of their Tier I capital requirements. The new regulatory backdrop has prompted banks to redeem more preferreds as they become callable. That scenario may prove beneficial for non-financial preferreds, according to Van Eck.

PFXF, which will be the 50th Market Vectors ETF, is expected to pay a monthly a dividend. Including PFXF, Market Vectors has introduced seven ETFs this year.

Pre-Market Outlook

Market Vectors Preferred Securities ex Financial ETF (PFXF)

In these uncertain environments and with bond yields at record lows, investors should consider looking at preferreds as an alternative to their portfolios, in hopes of finding better yields. Thus, I have found three preferred ETF's that are currently yielding over 6% that investors may consider adding to their portfolios.
First, is the iShares S&amp;P US Preferred Stock Index Fund (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>). However, before investors even consider preferreds, remember that most preferreds outstanding are financials. Thus, there is a risk in these that, if financial crisis fears erupt once again, these could sell off. But, as preferreds are senior to common equity, it will take a significant financial shock to cause this. PFF has over 84% of its holdings in financial companies (diversified financials, banks, insurance, and real estate), but this isn't terrible, so long as investors understand these risks. The securities are generally highly rated, with 78.5% of the assets are rated BB or better by S&amp;P. With a current yield of 6.07%, this may be a place to hide out.
For investors who would like a purely financial portfolio of preferreds, consider the PowerShares Financial Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgf#NYSE">PGF</a>). With a current yield of 6.95%, it is yielding roughly 4.6x the 10-year treasury bond. With 75% of the assets rated BBB or better by S&amp;P, this might be a good alternative to investors who do not mind the excess risk of a pure financial play. What is interesting is that a portfolio of financials is actually less risky, as rated by S&amp;P, than a portfolio of mostly financials, but that's the way the cookie crumbles.
Lastly, the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) offers investors a third alternative. Currently yielding 6.59%, this ETF can also help investors capture yield. With 95% of the assets rated BB or better by S&amp;P, this ETF provides a third alternative for investors fishing for income.

Weathering the Storm in Preferred ETF's (PFF, PGF, PGX)

First Trust, the eleventh-largest U.S. ETF issuer, has filed plans with the Securities and Exchange Commission (SEC) to possibly list an actively managed preferred stock ETF. No ticker or expense ratio was disclosed in the filing.

Under normal market conditions, the new First Trust ETF would invest at least 80% of its net assets in preferred stocks and similar securities and the fund may invest up 15% of its net assets in cash and cash equivalents, according to the filing. 

The new ETF will invest in only investment grade securities. Preferred securities generally pay fixed or adjustable-rate distributions to investors and have preference over common stock in the payment of distributions and the liquidation of a company's assets, but are generally junior to all forms of the company's debt, including both senior and subordinated debt, according to the filing.

First Trust preferred ETF will face competition in the form of the well-established PowerShares Financial Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgf#NYSE">PGF</a>), the iShares Preferred Stock Index Fund (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>), the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) and the newly minted Global X Canada Preferred ETF (NYSE: <a class="ticker" href="/stock/cnpf#NYSE">CNPF</a>), just to name a few.

Illinois-based First Trust had 60 ETFs with $5.9 billion in assets under management at the end of August, according to data from the National Stock Exchange.

First Trust Files Plans for Active Preferred ETF

First Trust Files Plan for Active Preferred ETF

Global X, the New York-based ETF issuer with 31 funds currently trading and over $1.8 billion assets under management, plans to add to its lineup of Canada-specific ETFs with the debut of the Global X Canada Preferred ETF on Wednesday. 

The new ETF will trade on the New York Stock Exchange under the ticker “CNPF” and feature an expense ratio of 0.58%. CNPF will track the Solactive Canada Preferred Stock Index, an index comprised of preferred issues listed on the Toronto Stock Exchange.

In an environment of depressed interest rates, investors have taken to preferred stocks and various ETFs that track the asset class as a way of capturing yield. Popular preferred stock ETFs inlcude the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>), which has $1.4 billion in assets under management, and the PowerShares Financial Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgf#NYSE">PGF</a>), which has $1.8 billion in AUM. 

Other well-established preferred stock ETFs include the iShares S&amp;P U.S. Preferred Stock Index ETF (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) and the SPDR Wells Fargo Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/psk#NYSE">PSK</a>).

The Global X Canada Preferred ETF will be the fifth Canada-specifc ETF available to U.S. investors joining the iShares MSCI Canada Index Fund (NYSE: <a class="ticker" href="/stock/ewc#NYSE">EWC</a>), the Guggenheim Canadian Energy Income ETF (NYSE: <a class="ticker" href="/stock/eny#NYSE">ENY</a>), the IQ Canada Small Cap ETF (NYSE: <a class="ticker" href="/stock/cnda#NYSE">CNDA</a>) and the Global X S&amp;P/TSX Venture 30 Canada ETF (NYSE: TSXV), which Global X rolled out earlier this year.

When CNPF starts trading, it will mark the fifth new fund introduced by Global X in May alone.

Global

CNDA

Global X Canada Preferred ETF To Debut On Wednesday

The hunt for yield has been a prevalent theme for several years, particularly in the wake of so much dividend cutting during the financial crisis. Financials were the unfortunate ring-leaders of the dividend-cutting regime and while they have started to climb back into the dividend game, but even with the recent efforts, this still isn't a great sector for income investors.

Unless of course we're talking about preferred stocks. That's where the yields are strong and the dividends are as close to a guarantee as one can get. The issue with preferreds isn't that they aren't useful investments. They are. The issue is that many investors aren't familiar with preferreds because they aren't liquid securities, so the mainstream financial press doesn't spend a lot of time talking about them.

Beyond that, some investors may not know where to start with preferreds and that's just one more reason why we have a compelling <a href="http://www.marketbulletin.com/etf.php">ETF</a> Showdown today between the PowerShares Preferred Portfolio (NYSE: <a class="ticker" href="/stock/pgx#NYSE">PGX</a>) and the SPDR Wells Fargo Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/psk#NYSE">PSK</a>), one of the newest entrants to the preferred ETF game.

As we just noted, a big part of the allure with preferred stocks is the yield and PGX takes that cake with a yield of 6.65% compared to 5.89% for PSK. Can PSK make up for that deficiency?

Sure. PSK holds 158 securities, more than double what PGX offers exposure to. Plus, PSK wins the fee battle with an expense ratio of 0.45% compared to 0.5% for PGX. On the other hand, PGX is far more liquid with average daily volume of over 411,000 shares compared to just over 18,000 shares for PSK.

Preferred issues from Barclays (NYSE: <a class="ticker" href="/stock/bcs#NYSE">BCS</a>), HSBC (NYSE: <a class="ticker" href="/stock/hbc#NYSE">HBC</a>) and Wells Fargo (NYSE: <a class="ticker" href="/stock/wfc#NYSE">WFC</a>), among others, can be found among the top-10 holdings in both funds. PSK is less heavy on financials, though with an 83% allocation to that sector compared to more than 88% for PGX, that's not saying much.

In fact, it's the weight to financials that makes a tie between PGX and PSK easy to break. PGX gets two points for the better yield and superior liquidity. PSK gets two points for the lower fees and superior sector diversity. So who wins?

Neither. While each ETF has its merits, if an investor is going to be this heavy into preferreds issued by financial services firms, just go all the way for 100% exposure to financials and buy the PowerShares Financial Preferred ETF (NYSE: <a class="ticker" href="/stock/pgf#NYSE">PGF</a>), which by the way, has a better yield than both PGX and PSK.

ETF Showdown: Penchant For Preferreds

If you are looking for high yields, diversification, liquidity, and monthly dividends, then maybe investing in income producing ETFs, also known as Exchange Traded Funds, and ETNs or exchange traded notes, may be what you are looking for. WallStreetNewsNetwork.com has recently developed a new list of more than 15 ETFs with <a href="http://WallStreetNewsNetwork.com">yields above 3%</a>. Here are a few examples.
The iShares JPMorgan USD Emerging Markets Bond ETF (<a class="ticker" href="/stock/emb#">EMB</a>) yields 5.15%, payable monthly. It attempts to track the JPMorgan EMBI Global Core index.
The PowerShares Preferred ETF (<a class="ticker" href="/stock/pgx#">PGX</a>) invests most of its assets in fixed rate U.S. dollar-denominated preferred securities, and attempts to match the Merrill Lynch Fixed Rate Preferred Securities index. It pays a yield of 7.2%. 
The First Trust FTSE EPRA/NAREIT Global Real Estate ETF (<a class="ticker" href="/stock/ffr#">FFR</a>) attempts to track the FTSE EPRA/NAREIT Developed Markets Real Estate index. This ETF which gives you exposure to real estate around the world yields 5.5%.
Do your homework on these ETFs before investing, especially the yield calculations, since many of the yields are based on recent higher-than-typical dividends that may not be maintained in the future. Always check the historical dividend payment history. In addition, try to buy the ones that are selling below net asset value. A good starting point for <a href="http://wallstreetnewsnetwork.com" target="_blank">high yield ETF ideas</a> is the free database at wsnn.com, which can be downloaded, sorted, added to, and changed. Disclosure: Author does not own any of the above at the time this was written.
By <a href="http://Stockerblog.com">Stockerblog.com</a> 
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iShares JPMorgan USD Emerging Markets Bond Fund

First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund

Top Yielding ETFs

Yesterday I accepted an invitation to speak at the <a href="http://www.insideetfsconference.com/">Inside ETFs Conference</a> in February put on by <a href="http://www.indexuniverse.com/">IndexUniverse</a>. They sent along a tentative agenda for the conference for me to pick a panel or two that I'd be interested in. Third or fourth on my list (so I doubt I will be in this one) is one titled Do ETFs Work for Fixed Income?
In past posts I've talked about picking the best (obviously this is subjective) tool to capture whatever it is that is being sought. It does not make sense that any single wrapper can be the best for all segments of all markets. Portfolios that only use ETFs is missing out on all sorts of things.
This point is very true with fixed income investing. There are four wrappers for fixed income, that is without getting in to UITs or other untradedable products; individual issues (including preferreds), ETFs, closed end funds and traditional mutual funds and we have all four in our ownership universe. I think the best path here is an agnostic one. Investors should choose the best product for each exposure they want given the totality of their situation.
<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_7ZckZ-8naz0/TImQMWiDh8I/AAAAAAAADgQ/xJUMRcDXqhg/s1600/skull+valley.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 320px; height: 213px;" src="http://4.bp.blogspot.com/_7ZckZ-8naz0/TImQMWiDh8I/AAAAAAAADgQ/xJUMRcDXqhg/s320/skull+valley.jpg" alt="" id="BLOGGER_PHOTO_ID_5515097760573130690" border="0" /></a>From the top down foreign fixed income exposure is important for most folks, IMO. We do a fair bit with individual sovereign issues. Generically speaking this is a great way to go but not right for everyone due in some cases to account size so ETFs and CEFs can work; for some people they are the better way to go.
I have not been a fan of preferred stock ETFs. When they first came out I wrote about them negatively for theStreet. Back then they were obviously very heavy in financial companies because that is who issues most of the preferreds but these funds had a lot of exposure to what I felt were crappy companies. There was a foreign preferred ETF, that might be gone now, that had multiple issues from banks that are no longer with us. The PowerShares Preferred Portfolio (<a class="ticker" href="/stock/pgx#">PGX</a>) was issued around $20, bottomed out in the sixes and closed yesterday at $14.54. The two individual preferreds we use the most have each been reasonably close to par for a long time since the meltdown and are now back at par whereas PGX still needs to go up 33% to get back to par--that is if thinking of $20 as par is reasonable.
That is not to say what we use did not go down because it did but it did not take a lot of work to look under the hood, see companies making the most headlines being featured in the funds and deciding to stay away. Here the ETF wrapper was helpful because anyone looking could know exactly what the funds held and could make an informed decision but this is not the case with traditional bond mutual funds. The reported holdings lag by three- six months so buying an actively managed bond fund boils down to a leap of faith that the manager will avoid the sludge. Some managers did and some did not.
Contrast my opinion with any of the many articles out there that look favorably on the preferred stock ETFs. Clearly anyone who bought in the sixes got a fantastic entry point and picked up some yield along the way too. I'm not sure what it is but there is a bullish case for these ETFs now so this boils down to what is sought after in the fixed income portion of the portfolio. Personally I want as little volatility as possible, take in a little yield and have some protection in case the dollar does get away.
What I want is not going to be suitable for everyone. Each person has to understand what they want out their fixed income portfolio and build accordingly using whatever products they feel are most consistent with their intention. This is done by thoroughly understanding the pluses and minuses of each product. 
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Fixed Income and ETFs

There are plenty of advantages of investing in income ETFs, also known as Exchange Traded Funds, and are occasionally referred to as ETNs or exchange traded notes. 
* Many pay high yields * Diversification of securities in the portfolio * The liquidity is better than a bond mutual fund * Several ETF industries and sectors to choose from (e.g. high yield bond, real estate, and emerging markets bond) * Most pay dividends monthly
 WallStreetNewsNetwork.com has turned up a new list of more than 15 with <a href="http://WallStreetNewsNetwork.com">yields above 3%</a>. Here are a few examples.
The PowerShares Preferred ETF (PGX) invests most of its assets in fixed rate U.S. dollar-denominated preferred securities, and attempts to match the Merrill Lynch Fixed Rate Preferred Securities index. It pays a yield of 7.9%. 
The long named First Trust FTSE EPRA/NAREIT Global Real Estate ETF (FFR) attempts to track the FTSE EPRA/NAREIT Developed Markets Real Estate index. This ETF which gives you exposure to real estate around the world yields 6.3%.
iShares JPMorgan USD Emerging Markets Bond ETF (EMB) yields 5.7%, payable monthly. It attempts to track the JPMorgan EMBI Global Core index.
Do your homework on these ETFs before investing, especially the yield calculations, since many of the yields are based on recent higher-than-typical dividends that may not be maintained in the future. Always check the historical dividend payment history. A good starting point for <a href="http://wallstreetnewsnetwork.com" target="_blank">high yield ETF ideas</a> is the free database at wsnn.com, which can be downloaded, sorted, added to, and changed. Author does not own any of the above.
By <a href="http://Stockerblog.com">Stockerblog.com</a> 
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