Since most preferred stocks are issued by financial companies, the new the iShares S&P International Preferred Stock has an 84.7% portfolio weighting in the financial sector, according to BlackRock.
“Ongoing volatility, huge pressures on traditional, developed country investment markets and the weakening of formerly secure sources of income are compelling investors to look farther afield for incremental performance opportunities,” the investment manager said.
BlackRock plans to expand its lineup of products targeting fixed income and international investments. In October, investors flocked to ETFs offering access to emerging markets and high yield bonds in search of diversification, the company added. [High Five: Dividend ETFs with Juicy Yields]
iShares S&P Preferred Stock Fund
