Other ETFs in this category include PowerShares Preferred Portfolio (NYSEArca: PGX), PowerShares Financial Preferred Portfolio (NYSEArca: PGF), SPDR Wells Fargo Preferred Stock ETF (NYSEArca: PSK), iShares S&P International Preferred Stock Index (NYSEArca: IPFF), Market Vectors Preferred Securities ex Financials ETF (NYSEArca: PFXF), Global X Canada Preferred ETF (NYSEArca: CNPF) and Global X SuperIncome Preferred ETF (NYSEArca: SPFF).
“Some investors can’t handle any volatility or stress, even that which involves success. For such investors, preferred stocks might be worth considering,” Investor’s Business Daily reports.
“A preferred stock is in some ways more like a bond. If a company goes belly up and liquidates, the bondholders are first in line. Preferred stock holders are next, followed by common stock holders who often won’t get much more than a hearty good wish,” it adds. “The dividend yield is generally higher for a preferred stock than for a common stock. The drawback is that price appreciation is less likely.”
iShares S&P U.S. Preferred Stock
Full disclosure: Tom Lydon’s clients own PGF and SPY.