Preferred stocks have a higher claim on assets and earnings than common stocks and dividends are paid to preferred shares before common stocks. However, preferred shareholders do not have voting rights and have a lower potential for capital appreciation. [ETF Chart of the Day: Preferred Shares]
Global X also offers a preferred stock ETF that provides exposure to Canadian preferred shares: Global X Canada Preferred ETF (NYSEArca: CNPF), which has a 3.91% yield.
Other preferred stock ETFs include:
- iShares S&P US Preferred Stock Index (NYSEArca: PFF): 5.89% yield.
- PowerShares Preferred Portfolio (NYSEArca: PGX): 6.44% yield.
- PowerShares Financial Preferred Portfolio (NYSEArca: PGF): 6.72% yield.
- SPDR Wells Fargo Preferred Stock ETF (NYSEArca: PSK): 6.3% yield.
- iShares &P International Preferred Stock Index Fund (NYSEArca: IPFF): 30-day SEC yield 3.25%.
For more information on new fund launches, visit our new ETFs category.
Max Chen contributed to this article.