Some market observers see more upside for preferred stocks and the relevant ETFs.

Some preferred stocks in the table are selling above par value because they are in demand. While preferred stocks are traditionally considered more like a debt instrument than equity in safety, they can fall in price, just like common. Liquidity too, can occasionally be an issue,” reports Vito Racanelli for Barron’s. “Preferred stocks are income securities, not capital-gains investments. For an investor who prefers an attractive yield over capital gains, preferred could be the way to go.”

Related: High-Yield Dividend ETFs Come with a Price

Alternatively, investors may also consider the PowerShares Variable Rate Preferred Portfolio Fund (NYSEArca: VRP) in a rising rate environment. Variable-rate preferreds usually trade more like bonds with shorter durations, so more conservative investors may find the lower-risk profile more appealing. Although VRP is a lower duration product, it does yield over 5%.

PowerShares Preferred Portfolio