ETF Asset Class: Preferred Stock
A preferred stock ETF is an exchange-traded fund that specializes in investing in preferred stocks. Preferred stocks are a type of investment that pays regular dividends and has preference over common stocks when it comes to the distribution of assets in the event of liquidation. Because preferred stocks offer both stability and potential for growth, they are an attractive option for many investors. However, because they are not as widely traded as common stocks, it can be difficult to find a good selection of preferred stocks to invest in. A preferred stock ETF provides access to a large pool of preferred stocks, making it an ideal way to add this asset class to your portfolio.