PGX: Poor Returns, Almost No Downside Protection, It's A Sell.

2026-05-05 15:13:12 ET

The universe of preferred shares has changed in recent years, and eight of the ten largest issues in the S&P Global US Preferred Stock Index ( SPPREF ) are now a combination of common equity with an overlay of complex equity options. As discussed in a recent article that I wrote about PFXF , the VanEck Preferred Securities ex Financials ETF, " these Are Not Your Father's Preferred Shares ". Such securities are not, in my opinion, suitable investments for the quintessential preferred share buyer who is seeking a stable source of dividend income. By contrast, the underlying statistics regarding the Invesco Preferred ETF ( PGX ) are cut and dried. The ETF does buy the same type of preferred shares that your parents or grandparents may have invested in....

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