Preferred Shares ETF Drops as Yields Rise on Fed Speculation
June 14, 2013 Leave a comment
Preferred Shares ETF Drops as Yields Rise on Fed Speculation
An exchange-traded fund that mimics a basket of preferred shares is suffering the worst four-day stretch in 20 months amid deepening concern the Federal Reserve will pare unprecedented stimulus.
The iShares S&P U.S. Preferred Stock Index Fund has dropped 5.7 percent from an almost five-year peak on May 8, in the worst four-day rout since October 2011.
Perpetual preferred stocks, whose fixed dividends mean they trade like bonds, have lost 5.6 percent as of yesterday since peaking on May 8, compared with the 1.2 percent drop in the Standard & Poor’s 500 Index (SPX), according to data compiled by Bank of America Merrill Lynch and Bloomberg. Read more of this post
























