The largest ETF indexed to preferred shares that pays a yield of nearly 6% has recouped some of the steep losses it absorbed when interest rates shot higher.

The iShares U.S. Preferred Stock ETF (NYSEArca: PFF) has climbed back above its 200-day simple moving average after briefly falling below this technical indicator for the first time since January 2012.

PFF holds $11.4 billion of assets and sports a 12-month yield of about 5.8%, according to manager BlackRock. The ETF is down nearly 3% for the trailing month despite the recent bounce. [Rising Rate Concerns Weigh on Preferred Stock ETFs]

Preferred stock and other high-yield ETFs were hit hard when interest rates jumped in May and the first couple weeks of June. Yields on the 10-year Treasury note nearly touched 2.3% earlier this month.

Preferred shares are hybrid securities that combine features of equities and bonds. Like bonds, preferred shares are highly vulnerable to pressure from interest-rate shifts, reports Chris Dieterich for’s MoneyBeat blog.