Parnell went on to note that when preferreds and common stocks widely diverged in 2007, they did catch up to each other in early 2008, just before the start of the financial crisis. That could be an ominous forecast preferred ETFs as a group, particularly given the fact that all of the funds have traded lower since May.
iShares U.S. Preferred Stock ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of PGF.