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Van Eck Adds Ex-Financial Preferred Stock ETF

By: ETFdb
Van Eck is wading into a new corner of the ETF industry this week, debuting a unique product offering that will deliver exposure to preferred stock issued by non-financial companies. The new Market Vectors Preferred Securities ex-Financials ETF (PFXF) will offer exposure to an index comprised of about 70 different issues of preferred stock with credit ratings ranging from CCC to AA. While PFXF certainly isn’t the first ETF to offer access to these “hybrid” securities that have characteristics of both stocks and bonds, it will be unique in that it avoids financial issuers entirely. The iShares S&P U.S. Preferred Stock Fund (PFF), which has more than $9 billion in AUM, allocates more than three quarters of its portfolio to financial companies. Under The Hood Instead, PFXF will spread holdings around a number of different sectors. The new fund will include a meaningful allocation to REITs (about 31%) as well [...] Click here to read the original article on ETFdb.com. Related Posts: iShares Launches International Preferred Stock ETF (IPFF) Van Eck Files For Ex-Financials Preferred Stock ETF Global X Debuts First Canada Preferred Stock ETF (CNPF) Why You Need a Preferred Stock ETF 101 ETF Lessons Every Financial Advisor Should Learn
Van Eck is wading into a new corner of the ETF industry this week, debuting a unique product offering that will deliver exposure to preferred stock issued by non-financial companies. The new Market Vectors Preferred Securities ex-Financials ETF (PFXF) will offer exposure to an index comprised of about 70 different issues of preferred stock with credit ratings ranging from CCC to AA. While PFXF certainly isn’t the first ETF to offer access to these “hybrid” securities that have characteristics of both stocks and bonds, it will be unique in that it avoids financial issuers entirely. The iShares S&P U.S. Preferred Stock Fund (PFF), which has more than $9 billion in AUM, allocates more than three quarters of its portfolio to financial companies.  Under The Hood Instead, PFXF will spread holdings around a number of different sectors. The new fund will include a meaningful allocation to REITs (about 31%) as well [...]

Click here to read the original article on ETFdb.com.

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