Top 8 Preferred Stock ETFs in 2015

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Find top 8 preferred stock ETFs in 2015. These best exchange traded funds are First Trust Preferred Securities and Income ETF, PowerShares Financial Preferred fund.

Best Preferred Equity Funds

Preferred stock funds invest mainly in preferred stocks and perpetual bonds. These portfolios tend to have more credit risk than government or agency backed bonds. The fund has an effective duration longer than other bond portfolios. These portfolios hold more than 65% of assets in preferred stocks and perpetual bonds.

These top ETFs are sorted based on its year to date return performance (up to July 19, 2015). You can find this best ETF funds review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, holdings, yield, etc.

Top 8 preferred stock ETFs in 2015 are:
    Top 8 Preferred Stock ETFs in 2015
  1. First Trust Preferred Securities and Income ETF (FPE)
  2. PowerShares Financial Preferred ETF (PGF)
  3. PowerShares Variable Rate Preferred ETF (VRP)
  4. PowerShares Preferred ETF (PGX)
  5. SPDR Wells Fargo Preferred Stock ETF (PSK)
  6. iShares US Preferred Stock ETF (PFF)
  7. Market Vectors Preferred Securities ex Financials ETF (PFXF)
  8. Global X SuperIncome Preferred ETF (SPFF)

First Trust Preferred Securities and Income ETF

This First Trust Preferred Securities and Income ETF uses its assets to purchase preferred securities and income-producing debt securities including corporate bonds, high yield securities and convertible securities. It has a high dividend yiled of 5.83%. The annual expense fee is 0.87%. With assets of $292 million, it has a share price of $19.11.

More: Top Preferred Stock Mutual Funds 2014

In 2015, this top preferred stock ETF has a year to date return of 3.01%. Top 2 sectors are corporate and securitized. Top 3 stocks are Chs Pfd, Ctigroup Cap Pfd, and Morgan Stanley Pfd.

PowerShares Financial Preferred ETF

As one of the top 15 preferred stock ETFs in 2015, this PowerShares Financial Preferred ETF is popular among investors. With $1.4 billion of assets, this index ETF is tracking the Wells Fargo Hybrid & Preferred Securities Financial Index. Its expense fee is 0.63% per year.

More: Top 6 Preferred Stock or Convertible Bonds Exchange Traded Funds 2012

Morningstar has ranked this PowerShares ETF with 2 star rating. The past 5 year performance is as follows:
  • Year 2015: 2.39% (YTD)
  • Year 2014: 14.49%
  • Year 2013: -1.28%
  • Year 2012: 20.97%
  • Year 2011: -1.73%

Fund Performance

NoFund NameTickerExpense FeeYTD Return %
1First Trust Preferred Sec & Inc ETFFPE0.853.93
2PowerShares Financial Preferred ETFPGF0.633.79
3PowerShares Variable Rate Preferred ETFVRP0.503.43
4PowerShares Preferred ETFPGX0.503.33
5SPDR® Wells Fargo Preferred Stock ETFPSK0.453.33
6iShares US Preferred StockPFF0.472.91
7Market Vectors® Pref Secs exFincls ETFPFXF0.401.20
8Global X SuperIncome™ Preferred ETFSPFF0.580.38

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