The largest ETF tracking preferred shares is trading near a 52-week high as investors gravitate to yield-producing sectors.
The iShares S&P U.S. Preferred Stock Index Fund (NYSEArca: PFF) has delivered a year-to-date total return of 13.2% as of July 13, according to Morningstar. [ETF Chart of the Day: Preferred Shares]
PFF has a 30-day SEC yield of 6.3%, according to manager BlackRock. [Some Preferred Stock ETFs Yield More Than 6%]
Along with dividend funds, preferred stock ETFs have been popular with investors trying to boost yield in their portfolios.
Preferred shares are hybrid securities that combine features of stocks and bonds.
“This represents ownership in a company, but it has more protection than common stock. A preferred stock also typically pays a higher yield,” writes Tom Taulli at InvestorPlace.