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Preferred Stock ETFs Press Higher, Ignore Interest Rate Spike

Benzinga.com
0 Comments| March 5, 2015

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February was a volatile month for interest rates and asset classes traditionally linked to machinations in the bond markets. The CBOE Interest Rate 10 Year Note (INDEX: TNX) spiked from a low of 1.67 percent to a high of 2.00 percent last month amid a strong bid for stocks.

This spike higher in rates led to a selloff in the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE: TLT), Vanguard REIT Index Fund (NYSE: VNQ) and even the Utility Select Sector SPDR ETF (Utilities SPDR (ETF)) (NYSE: XLU). However, the asset class that shrugged off this macro-economic headwind and continued to new highs is preferred stocks.

What Are Preferred Stocks?

Preferred stocks are known as a hybrid instrument that carry qualities of ...

/www.benzinga.com/etfs/sector-etfs/15/03/5302472/preferred-stock-etfs-press-higher-ignore-interest-rate-spike alt=Preferred Stock ETFs Press Higher, Ignore Interest Rate Spike>Full story available on Benzinga.com

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