PGX - PGF: Only If Bullish On Financials And Falling Rates

2024-04-18 15:17:57 ET

Summary

• The Invesco Financial Preferred ETF offers higher yield and lower volatility compared to common stock, making it a potential asset for portfolios.
• The PGF ETF primarily invests in fixed-rate preferred securities issued by financial entities in the U.S. domestic market.
• The fund's sector-specific focus on the financial sector exposes it to sector-specific risks, but it also provides an opportunity for steady dividend payments.

Preferred stocks tend not to get a lot of attention, but I think the asset class does have a place in one's portfolio for yield without the same degree of volatility as common stock. Fortunately, there are exchange-traded funds, or ETFs, out there worth looking at for exposure, like the Invesco Financial Preferred ETF ( PGF ). PGF is a fund that primarily invests in fixed-rate preferred securities issued by financial entities in the U.S. domestic market. The fund, which began its operations on December 1, 2006, tracks the ICE Exchange-Listed Fixed Rate Financial Preferred Securities Index....

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