Preferred Stock ETFs: What You Need to Know

Preferred stock ETFs are popular investments during low interest rate environments due to their attractive yields. According to Markit , assets under management soared more than 12 times between 2008 and 2016 to $27.2 billion. The majority of those gains occurred in 2009 and 2010, and again in 2015 and 2016, during periods of exceptionally low interest rates. The problem is that these trends can quickly reverse in a rising interest rate environment.