It looks like the next exchange traded funds will track preferred shares, according to Joe Morris of Ignites. Barclays has filed with the SEC to offer an ETF based on the S&P U.S. Preferred Stock Index. While PowerShares has filed for two preferred-share ETFs based on Wachovia indexes. One would focus on financial firms and the other on real estate investment trusts.
Preferred shares are equity investments that are similar to common stock except there are no voting rights and they deliver a set, guaranteed dividend payment.
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