Income investors are well aware of the benefits of using preferred stocks in their portfolio to generate dividends and capital appreciation. These hybrid instruments have characteristics of both equity and debt in that they pay a fixed coupon but are higher on the capital structure than common stock holders.
The tailwind from the stock and bond markets in 2014 has been a perfect recipe for preferred stocks to shine. A number of ETFs have taken advantage of this environment.
The largest fund in this space is the iShares U.S. Preferred Stock ETF (NYSE: PFF), which has over $11 billion in total assets. This ETF holds 330 preferred securities that are primarily weighted towards large banking and ...
/www.benzinga.com/etfs/sector-etfs/14/12/5111364/3-preferred-stock-etfs-cap-off-strong-year alt=3 Preferred Stock ETFs Cap Off Strong Year>Full story available on Benzinga.com
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