ETF Database » PFF

Why You Need a Preferred Stock ETF

Jared Cummans — Fri, 25 May 2012 13:00:09 +0000

With interest rates frozen at near-zero levels for the next two years, investors have been scrambling to find sources of income for their portfolios. As such, dividend investing has become increasingly popular in the past few years, as investors have been quick to adopt the benefits offered by securities that pay out a steady cash distribution. Though some go for bonds and others may hone in on a particular equity sector, preferred shares represent one of the most enticing plays in today’s environment [see also 25 Things Every Financial Advisor Should Know About Commodities]. Preferred stock represents a unique class of ownership that has a higher claim on the assets and cash flow than common stock, meaning preferred shareholders will generally receive a dividend that must be paid out before dividends to common stockholders. The higher priority on the pecking order for dividends makes preferreds especially enticing, not to mention that their [...]

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101 ETF Lessons Every Financial Advisor Should Learn

Michael Johnston — Wed, 23 May 2012 12:00:06 +0000

Exchange-traded funds (ETFs) have burst on to the scene in the last few years, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ETFs have empowered financial advisors (FAs), registered investment advisors (RIAs), Chief Financial Officers (CFOs), money managers, and retail investors to take greater control over their portfolios, pushing down fees and maxing out tax efficiency in the process. While ETFs appear quite simple on the surface, these securities can be quite complex. In order to get the most out of ETFs, there’s a lot that investors need to know about the structure, opportunities, and limitations of these securities. Below we outline just about everything you need to know about ETFs, from the basics to the more sophisticated aspects of these products. 1. ETFs Are Tax Efficient One of the biggest advantages of ETFs is their tax-efficient structure; [...]

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iShares Launches More High Yield ETFs (GHYG, IYLD)

Michael Johnston — Thu, 05 Apr 2012 13:42:21 +0000

iShares continued its introduction of ETFs targeting high yielding asset classes with the debut of two more funds on the BATS Exchange this week. The Global HighYield Corporate Bond Fund (GHYG) completes a trio of junk bond ETFs to debut this week that target markets outside the U.S., while the Morningstar Multi-Asset Income Index Fund (IYLD) will be an ETF-of-ETFs that targets high yielding asset classes. Under The Hood: GHYG GHYG will seek to replicate the Market iBoxx Global Developed Markets High Yield Index, a benchmark that includes bonds rated below investment grade from issuers in developed markets around the world. GHYG will be tilted heavily towards the U.S., which accounts for about 70% of holdings. The next largest country allocations are Luxembourg (7%), the Netherlands (4%), France (4%), and Canada (3%). The remainder of the portfolio includes primarily Western European countries; there is no allocation to developed Asian markets [...]

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Van Eck Files For Ex-Financials Preferred Stock ETF

Stoyan Bojinov — Fri, 23 Mar 2012 11:00:20 +0000

Bullish momentum has cooled off a bit on Wall Street this week although the good news keep coming in. Investors were happy to see the latest home builders index release on Monday, although a slightly worse-than-expected existing home sales report on Wednesday managed to tip indexes lower. Vank Eck has laid down the groundwork for an intriguing equity fund that allows for investors to beef up their portfolio’s current return without taking on excessive risk [see also Five ETFs With Sky High Yields]. New York-based issuer Van Eck has filed with the SEC for a preferred stock ETF with a twist [see SEC Filing]: Market Vectors Preferred Securities ex-Financials ETF: The underlying index for this ETF will consist of convertible and nonconvertible U.S.-listed preferred stocks. The distinguishing feature of this fund is the fact that it avoids exposure to financial securities, potentially increasing the appeal for those who wish to avoid this often times volatile sector [see Financials Free ETFdb Portfolio]. [...]

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Seven Surprisingly Large ETFs

Jared Cummans — Tue, 21 Feb 2012 12:00:28 +0000

Everyone is familiar with the SPDR S&P 500 Fund (SPY). SPY is by far the most popular ETF in the world, with nearly $100 billion in assets and an ADV around 150 million. Those numbers ensure that this is not only the largest ETF in the world, but one of the largest funds in the investing space. It was the first ETF ever listed (though note that it is structured as a UIT) and has a track record of almost two decades. But while many focus on the king of ETFs, there are a number of other products that have amassed a healthy number of assets, sometimes under the radar [see also Why No Investor Should Own GLD]. Below, we list seven ETFs with a large base of assets though many investors may not be aware or simply would not expect these funds to hold billions in assets. Alerian MLP Index ETN [...]

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iShares Launches International Preferred Stock ETF (IPFF)

Michael Johnston — Thu, 17 Nov 2011 14:37:05 +0000

iShares, the issuer behind the most popular product in the Preferred Stock ETFdb Category, debuted an international counterpart to PFF this week. The recently-launched S&P International Preferred Stock ETF (IPFF) will be linked to an index consisting of preferred stock from ex-U.S. developed market issuers, with a hefty allocation to Canadian banks. IPFF becomes the sixth U.S.-listed ETF to tap into this asset class, and just the second to offer access to preferred securities offered in developed markets outside the U.S. Preferred Stock 101 Preferred stock is classified as equity, but these securities exhibit characteristics of both stocks and bonds. Preferred stock generally carries no voting rights and offers a fixed dividend payout that is subordinate to debt payments but senior to dividends on common stock. Some preferred stock is convertible to common equity at a predetermined ratio, a feature that allows investors to maintain some potential for upside appreciation [...]

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NSX Data: VWO Leads All ETFs In YTD Inflows

Michael Johnston — Thu, 07 Jul 2011 11:00:03 +0000

The latest ETF industry data from the National Stock Exchange is out, and after a small step back in May, exchange-traded products resumed their upward trajectory in June. Total ETP inflows totaled more than $8 billion last month, after May saw about $800 million in outflows–attributable in large part to big outflows from the S&P 500 SPDR (SPY). The world’s largest ETF had about $92 billion at the halfway point of 2011, and the ETF industry expanded to just under $1.1 trillion thanks to an impressive late June rally and another month of solid inflows. Both U.S. ($1.4 billion) and international equity ETFs ($1.4 billion) saw net inflows last month, though the combined total of those two categories fell short of the June haul for fixed income funds ($3.3 billion). The number of ETPs with at least $50 million in assets climbed to 672 in June; a year ago, that [...]

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Dividend ETF Special: 25 Equity ETFs With Attractive Distribution Yields

Michael Johnston — Tue, 07 Jun 2011 13:00:55 +0000

For investors looking to generate current returns from the equity portion of their portfolio, there is no shortage of exchange-traded products offering attractive dividend yields in the current environment. From ETFs linked to dividend-weighted indexes to those that focus on companies with stellar distribution histories to simply sector-specific funds in high yield corners of the market, there are dozens of options to choose from. Below, we profile 25 dividend ETF options [for more ETF ideas, sign up for our free ETF newsletter]: 1. 2x Monthly Leveraged Business Development Company ETN (BDCL) Business development companies (BDCs) are a unique type of entity engaged in lending money to small and mid-sized companies and making various types of strategic investments. In order to maintain certain tax advantages, BDCs must pay out almost all of their current earnings–making this asset class an interesting option for yield-hungry investors. BDCL is a monthly leveraged ETN, meaning [...]

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Global X Debuts First Canada Preferred Stock ETF (CNPF)

Michael Johnston — Wed, 25 May 2011 14:00:44 +0000

Wednesday marks the first day of trading for another Global X ETF, as the company introduced a fund offering exposure to a basket of preferred stocks from Canadian issuers that trade on the Toronto Stock Exchange. The Global X Canada Preferred ETF (CNPF) seeks to replicate the Solactive Canada Preferred Index, a benchmark that includes nearly 60 different preferred stock issues from companies operating in various sectors of the Canadian economy. Financials are the biggest allocation within the portfolio, making up nearly 75% of assets. Energy firms (10%), telecom companies (6%) and consumer discretionary companies (5%) make up the remainder of the exposure. Preferred Stock Appeal Preferred stock is a unique asset class, exhibiting characteristics of both equities and fixed income. Preferred stock has been a popular source of financing for banks for decades, and has been popular with investors because of the ability to generate stable cash flows while [...]

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iShares Planning International Preferred Stock ETF

Michael Johnston — Sun, 06 Feb 2011 15:00:13 +0000

iShares hasn’t launched any new ETFs since rolling out its short-term TIPS fund (STIP) in early December, but the issuer responsible for close to 45% of all U.S. ETF assets continues to expand its product pipeline. The San Francisco-based ETF giant recently detailed plans for a international preferred stock ETF in an SEC filing; the proposed S&P International Preferred Stock Index Fund would seek to replicate the S&P International Preferred Stock Index. That index consists of preferred stocks from non-U.S. developed market issuers and traded in non-U.S. developed markets, with a heavy tilt towards securities of Canadian banks. As of January 24, 2011, Canadian issues accounted for about 73% of the underlying index, while financial companies made up more than 80% of the index. Also represented in the S&P International Preferred Stock Index are Japan, New Zealand, and the United Kingdom. iShares currently offers the S&P U.S. Preferred Stock Index [...]

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ETF Database » PFF

Why You Need a Preferred Stock ETF

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iShares Launches More High Yield ETFs (GHYG, IYLD)

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Van Eck Files For Ex-Financials Preferred Stock ETF

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iShares Launches International Preferred Stock ETF (IPFF)

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NSX Data: VWO Leads All ETFs In YTD Inflows

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