Market Vectors Preferred Securities ex-Financials ETF (NYSEArca: PFXF)
12-Month Yield: 6.33%
AUM: $138.1 million
Comment: Preferred stocks are a type of hybrid security that exhibit the characteristics of equity and bond instruments. Preferred share dividends take precedent over common share dividends but fall below bonds in a company’s debt obligation hierarchy. As many investors have noticed, this class of stocks provides high yields, but unlike regular stocks, the dividends are fixed, so investors can rely on a relatively stable source of income. Unlike other preferred ETFs, which are heavily allocated to the financial sector, PFXF cuts out financial stock exposure.