Zacks Ranks stocks can, and often do, change throughout the month. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. The monthly returns are then compounded to arrive at the annual return. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. These returns cover a period from Januthrough September 12, 2022. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. and Morningstar, Inc.Ĭopyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606Īt the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Forbes Media, LLC Investor's Business Daily, Inc. Each of the company logos represented herein are trademarks of Microsoft Corporation Dow Jones & Company Nasdaq, Inc. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. The iShares Preferred and Income Securities ETF seeks investment results that correspond generally to the price and yield performance of the ICE Exchange-Listed Preferred & Hybrid Securities Index. Fund Summary for PFF ISHARES PREFERRED & INCOM SECURITIES ETF The ICE Exchange-Listed Preferred & Hybrid Securities Index includes preferred stocks with a market capitalization over $100 million that meet minimum price, liquidity, trading volume, maturity and other requirements. PFF External Home Page Benchmark for PFF ICE EXCHANGE-LISTED PREF & HYBRID SEC ID View All Zacks ETF Rank #1 Strong Buy Funds ETF Expense Ratio Expense Ratio The aim of our models is to select the best ETFs within each risk category, so that investors can pick an ETF that matches their particular risk preference in order to better achieve their investment goals. Also, the 2008 crash was rough on preferred stocks, so not having been formed until 2009 is an advantage in a historical return context.Zacks proprietary quantitative models divide each set of ETFs following a similar investment strategy (style box/industry/asset class) into three risk categories- High, Medium, and Low. This is a good time to mention that all of these funds are relatively new (the oldest is just nine years old), so take their "histories" with a grain of salt. With a 6.06% dividend yield and 8.44% annualized returns since its 2009 inception, this fund is one of the best-performing ones in the sector - so far. SPDR Wells Fargo Preferred Stock ETF ( PSK 0.52%) - This fund is based on the Wells Fargo Hybrid and Preferred Securities Aggregate Index, which includes a variety of preferred stocks, including both fixed- and floating-rate securities. Long-term returns are unavailable, as this fund was started in 2014.Ĥ. Since we're in a low-rate environment right now, it shouldn't be much of a surprise that the fund's yield of 5.23% is a little less than the others mentioned here, but this could change significantly if the Federal Reserve starts to raise rates. PowerShares Variable Rate Preferred Portfolio ( VRP -0.46%) - This fund tracks the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index, which invests in preferred securities with interest rates that can go up or down over time. This fund pays a 5.77% dividend yield and has produced a 3.47% annualized total return since inception in 2008.ģ. The portfolio is a bit more concentrated, with the top holding accounting for nearly 4% of the portfolio, but it's still pretty diverse. PowerShares Preferred Portfolio ( PGX 0.08%) - This fund follows a similar, but slightly different index than the iShares fund - the BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index, which, as the name implies, includes a variety of preferred stocks paying a fixed rate. The fund pays a 5.76% dividend yield to shareholders and has produced 4.46% annualized total returns since its 2007 inception.Ģ. The ETF's largest holding makes up less than 2.3% of the total portfolio, which means returns aren't too dependent on the performance of any one preferred stock. Preferred Stock Index and, as a result, has a pretty diverse portfolio of preferred stocks. Preferred Stock ETF ( PFF -0.10%) - This fund tracks the S&P U.S. Note: ETFs are listed in order from most assets to least, not necessarily from best to worst.ġ. VanEck Vectors Preferred Securities ex Financials ETFĭata sources: TD Ameritrade and each fund's prospectus. PowerShares Variable Rate Preferred Portfolio
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