5 Preferred Stock ETFs Yielding 4% Or More

PowerShares Variable Rate Preferred Portfolio ETF (VRP - ETF report) ) – 4.89% Yield

The fund looks to track the performance of preferred stock, as well as certain types of hybrid securities that are functionally similar to preferred stock, that are issued by US-based or foreign issuers and that pay a floating or variable rate dividend or coupon. The $865.3-million ETF holds about 93 stocks and charges 50 bps in fees. The fund could be a great option for investors in the rising rate environment.

SuperIncome Preferred ETF (SPFF - ETF report) – 6.23% Yield

As the name suggests, the $233.6-million fund calls for outstanding dividend yields. Wells Fargo Co (5.55%), Kinder Morgan (5.37%) and GMAC Cap (Ally) PFD 8.125% (4.67%) take the top three spots in the basket. The fund charges 58 bps in fees.
 
PowerShares Financial Preferred Portfolio
 (PGF - ETF report) – 5.60% Yield
 
The fund tracks the Wells Fargo Hybrid and Preferred Securities Financial Index, managing a fund size of $1.82 billion. Holding 89 preferred stocks in its basket, the fund provides an exposure to U.S. listed securities issued by financial institutions. The fund charges 63 bps in fees. The fund has a notable 30-day Sec yield of 5.39% and an effective duration of 4.77 years indicating moderate interest rate risks.

SPDR Wells Fargo Preferred Stock ETF (PSK - ETF report) – 5.47% Yield

The 157-securities portfolio invests 63% of the basket in the financial sector. Real Estate, utilities and telecom take the next three spots. The fund charges 45 bps in fees.

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