This feature is especially unique because most preferred shares and ETFs zero in on the financial sector. PFXF tracks the Wells Fargo Hybrid and Preferred Securities ex Financials Index, which tracks non-financial U.S. publicly traded companies. The ETF’s largest sector is the REITs, or real estate investment trusts. The ETF yields 6.78%.
PFXF is unique from other preferred share ETFs because the expense ratio is the lowest seen in this sector and the fact that it carves out the financial sector. [Van Eck Launches Preferred Stock non-Financial Stock ETF]
“In developing PFXF we wanted to offer the income potential of preferred shares but limit potential volatility, by excluding financials, which has been the most volatile sector in recent years,” Brandon Rakszawski, product manager of Market Vectors said. [Preferred Stock ETF with 6% Yield Climbs to One Year High]
ETFs in direct competition with the latest releases:
- PowerShares Preferred Portfolio (NYSEArca: PGX) yields 6.5%
- iShares S&P US Preferred Stock index Fund (NYSEArca: PFF) yields 6.26%
- SPDR Wells Fargo Preferred Stock (NYSEArca: PSK) yields 6.35%
