Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 04/23/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
2.0%
1 yr return
4.9%
3 Yr Avg Return
-3.6%
5 Yr Avg Return
0.7%
Net Assets
$116 M
Holdings in Top 10
48.1%
Expense Ratio 0.47%
Front Load N/A
Deferred Load N/A
Turnover N/A
Redemption Fee N/A
Standard (Taxable)
N/A
IRA
N/A
Fund Type
Exchange Traded Fund
Name
As of 04/23/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund normally invests at least 90% of its total assets in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Fund’s investment sub-adviser, Penserra Capital
Management LLC (“Penserra” or the “Sub-Adviser”) seeks a correlation of 0.95 or better (before fees and expenses) between the Fund’s performance and the performance of the Index; a figure of 1.00 would represent perfect correlation. S&P Opco LLC (a subsidiary of S&P Dow Jones Indices, LLC) (“S&P” or the “Index Provider”) compiles, maintains and calculates the Index.
The Index is composed of all preferred stocks that are constituents of the S&P U.S. Investment Grade Preferred Stock Index (the “Base Index”). To be eligible for inclusion in the Base Index, a security must be considered “investment grade,” which are securities with a credit rating minimum of BBB-/Baa3/BBB- issued by S&P Global Ratings (“S&P Global”), Moody’s Investors Service, Inc. (“Moody’s”), and Fitch Ratings, Inc. (“Fitch”) respectively. The Index Provider performs the following eligibility screens for quality with respect to credit ratings:
• for an issue rated by all of S&P, Moody’s and Fitch, the lowest of the three ratings is used as the issue’s credit rating;
• when there are two ratings, the lower of the two ratings must be considered investment grade; and
• when there is only one rating, that rating must be designated in the investment grade category by the applicable rating agency.
While the Index is required to be comprised of securities that are investment grade at the time of investment, the ratings of the securities eligible for inclusion in the Index may be in the lowest tier investment grade rating, which provides for an indication of a higher risk of default than securities that maintain a higher investment grade rating. See “Credit Ratings Risk” for further information on the risks associated with credit ratings.
In addition to the credit rating minimum, to be eligible for inclusion in the Index, a preferred security must exhibit minimum liquidity quality characteristics as determined by the Index Provider. With respect to liquidity, a preferred security eligible for inclusion in the Index, a security must be:
• listed on a qualifying U.S. securities exchange;
• have a total market capitalization of greater than or equal to $100 million and have traded more than 250,000shares per month over each of the prior six months; and
• maintain a market capitalization of $75 million and have traded more than 125,000shares per month over each of the prior six months in order to remain eligible in the Index.
Preferred stocks for which the Index Provider cannot determine an indicated dividend yield are not eligible for inclusion. Once eligible securities have been selected for inclusion in the Index, the Index seeks to mitigate issuer concentration risk by assigning an equal weight to each issuer represented by the selected securities; however, the mitigation of issuer concentration risk is not guaranteed. That weight is then equally distributed among component securities of the issuer that are eligible for the Index. The Index is rebalanced quarterly.
In connection with the Index’s methodology to invest in preferred securities, the Index, and therefore the Fund, currently has exposure to preferred securities issued by real estate investment trusts (“REITs’). REITs are financial vehicles that pool investors’ capital to invest primarily in income-producing real estate or real estate-related loans or interests. The Index does not limit the types of REITs eligible for inclusion in the Index, which are generally categorized as “Mortgage REITs,” which invest the majority of their assets in real estate mortgages and derive their income primarily from interest payments, “Equity REITs”, which invest the majority of their assets directly in real property and derive their income primarily from rents, royalties and lease payments, and “Hybrid REITs,” which combine the characteristics of both Mortgage REITs and Equity REITs. As of the date of this prospectus, the Fund has exposure to preferred securities issued by Equity REITs.
The Fund is classified as “diversified” under the Investment Company Act of 1940, as amended (the “1940 Act”). To the extent the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent. As of the date of this prospectus, the Fund is concentrated in the financial sector.
Period | EPRF Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.0% | -3.8% | 3.7% | 53.85% |
1 Yr | 4.9% | 3.0% | 18.8% | 88.46% |
3 Yr | -3.6%* | -8.9% | 6.3% | 83.33% |
5 Yr | 0.7%* | -5.5% | 5.3% | 71.21% |
10 Yr | N/A* | 0.6% | 4.6% | 15.25% |
* Annualized
Period | EPRF Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 3.2% | -3.6% | 14.2% | 12.82% |
2022 | -24.6% | -29.4% | -9.6% | 84.72% |
2021 | -3.3% | -3.4% | 17.2% | 98.61% |
2020 | 2.0% | -24.8% | 9.0% | 15.94% |
2019 | 13.6% | 6.4% | 19.1% | 21.54% |
Period | EPRF Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.0% | -3.8% | 3.7% | 53.85% |
1 Yr | 4.9% | 3.0% | 18.8% | 88.46% |
3 Yr | -3.6%* | -8.9% | 6.3% | 83.33% |
5 Yr | 0.7%* | -5.5% | 5.3% | 71.21% |
10 Yr | N/A* | 0.6% | 4.6% | N/A |
* Annualized
Period | EPRF Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 9.4% | -1.9% | 26.5% | 17.95% |
2022 | -20.7% | -26.0% | -5.8% | 79.17% |
2021 | 1.4% | -2.5% | 27.4% | 88.89% |
2020 | 7.4% | -19.2% | 12.3% | 10.14% |
2019 | 19.5% | 10.0% | 32.0% | 30.77% |
EPRF | Category Low | Category High | EPRF % Rank | |
---|---|---|---|---|
Net Assets | 116 M | 24.1 M | 14.5 B | 92.31% |
Number of Holdings | 73 | 45 | 450 | 88.46% |
Net Assets in Top 10 | 50.6 M | 7.69 M | 1.65 B | 75.64% |
Weighting of Top 10 | 48.06% | 12.1% | 48.1% | 1.28% |
Weighting | Return Low | Return High | EPRF % Rank | |
---|---|---|---|---|
Preferred Stocks | 99.79% | 0.00% | 125.53% | 3.85% |
Cash | 10.76% | -0.02% | 10.76% | 1.28% |
Stocks | 0.00% | 0.00% | 28.30% | 66.67% |
Other | 0.00% | -4.48% | 12.19% | 51.28% |
Convertible Bonds | 0.00% | 0.00% | 31.65% | 90.67% |
Bonds | 0.00% | 0.00% | 98.46% | 88.46% |
EPRF Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.47% | 0.05% | 4.46% | 88.31% |
Management Fee | 0.47% | 0.00% | 1.00% | 12.82% |
12b-1 Fee | N/A | 0.00% | 1.00% | 2.78% |
Administrative Fee | N/A | 0.01% | 0.55% | N/A |
EPRF Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 2.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 1.00% | N/A |
EPRF Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | N/A | N/A | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
EPRF Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | N/A | 12.00% | 199.00% | 77.22% |
EPRF | Category Low | Category High | EPRF % Rank | |
---|---|---|---|---|
Dividend Yield | 0.00% | 0.00% | 10.59% | 30.77% |
EPRF | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Quarterly | Monthly | Quarterly |
EPRF | Category Low | Category High | EPRF % Rank | |
---|---|---|---|---|
Net Income Ratio | 4.70% | 0.88% | 7.54% | 27.03% |
EPRF | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Apr 01, 2024 | $0.090 | OrdinaryDividend |
Mar 01, 2024 | $0.090 | OrdinaryDividend |
Feb 01, 2024 | $0.090 | OrdinaryDividend |
Jan 02, 2024 | $0.089 | OrdinaryDividend |
Dec 01, 2023 | $0.105 | OrdinaryDividend |
Nov 01, 2023 | $0.105 | OrdinaryDividend |
Oct 02, 2023 | $0.085 | OrdinaryDividend |
Sep 01, 2023 | $0.085 | OrdinaryDividend |
Aug 01, 2023 | $0.085 | OrdinaryDividend |
Jul 03, 2023 | $0.085 | OrdinaryDividend |
Jun 01, 2023 | $0.085 | OrdinaryDividend |
May 01, 2023 | $0.085 | OrdinaryDividend |
Apr 03, 2023 | $0.085 | OrdinaryDividend |
Mar 01, 2023 | $0.085 | OrdinaryDividend |
Feb 01, 2023 | $0.085 | OrdinaryDividend |
Jan 03, 2023 | $0.073 | OrdinaryDividend |
Dec 01, 2022 | $0.050 | OrdinaryDividend |
Nov 01, 2022 | $0.090 | OrdinaryDividend |
Oct 03, 2022 | $0.090 | OrdinaryDividend |
Sep 01, 2022 | $0.090 | OrdinaryDividend |
Aug 01, 2022 | $0.090 | OrdinaryDividend |
Jul 01, 2022 | $0.090 | OrdinaryDividend |
Jun 01, 2022 | $0.090 | OrdinaryDividend |
May 02, 2022 | $0.090 | OrdinaryDividend |
Apr 01, 2022 | $0.090 | OrdinaryDividend |
Mar 01, 2022 | $0.090 | OrdinaryDividend |
Feb 01, 2022 | $0.090 | OrdinaryDividend |
Jan 03, 2022 | $0.055 | OrdinaryDividend |
Dec 01, 2021 | $0.085 | OrdinaryDividend |
Nov 01, 2021 | $0.079 | OrdinaryDividend |
Oct 01, 2021 | $0.093 | OrdinaryDividend |
Sep 01, 2021 | $0.093 | OrdinaryDividend |
Aug 02, 2021 | $0.093 | OrdinaryDividend |
Jul 01, 2021 | $0.093 | OrdinaryDividend |
Jun 01, 2021 | $0.093 | OrdinaryDividend |
May 03, 2021 | $0.093 | OrdinaryDividend |
Apr 01, 2021 | $0.093 | OrdinaryDividend |
Mar 01, 2021 | $0.093 | OrdinaryDividend |
Feb 01, 2021 | $0.093 | OrdinaryDividend |
Jan 04, 2021 | $0.132 | OrdinaryDividend |
Dec 01, 2020 | $0.095 | OrdinaryDividend |
Nov 02, 2020 | $0.095 | OrdinaryDividend |
Oct 01, 2020 | $0.095 | OrdinaryDividend |
Sep 01, 2020 | $0.100 | OrdinaryDividend |
Aug 03, 2020 | $0.100 | OrdinaryDividend |
Jul 01, 2020 | $0.100 | OrdinaryDividend |
Jun 01, 2020 | $0.100 | OrdinaryDividend |
May 01, 2020 | $0.100 | OrdinaryDividend |
Apr 01, 2020 | $0.100 | OrdinaryDividend |
Mar 02, 2020 | $0.100 | OrdinaryDividend |
Feb 03, 2020 | $0.100 | OrdinaryDividend |
Jan 02, 2020 | $0.170 | OrdinaryDividend |
Dec 02, 2019 | $0.095 | OrdinaryDividend |
Nov 01, 2019 | $0.095 | OrdinaryDividend |
Oct 01, 2019 | $0.095 | OrdinaryDividend |
Sep 03, 2019 | $0.095 | OrdinaryDividend |
Aug 01, 2019 | $0.095 | OrdinaryDividend |
Jul 01, 2019 | $0.095 | OrdinaryDividend |
Jun 03, 2019 | $0.095 | OrdinaryDividend |
May 01, 2019 | $0.095 | OrdinaryDividend |
Apr 01, 2019 | $0.095 | OrdinaryDividend |
Mar 01, 2019 | $0.095 | OrdinaryDividend |
Feb 01, 2019 | $0.095 | OrdinaryDividend |
Dec 31, 2018 | $0.168 | OrdinaryDividend |
Nov 30, 2018 | $0.093 | OrdinaryDividend |
Oct 31, 2018 | $0.093 | OrdinaryDividend |
Sep 28, 2018 | $0.093 | OrdinaryDividend |
Aug 31, 2018 | $0.093 | OrdinaryDividend |
Jul 31, 2018 | $0.093 | OrdinaryDividend |
Jun 29, 2018 | $0.093 | OrdinaryDividend |
May 31, 2018 | $0.093 | OrdinaryDividend |
Apr 30, 2018 | $0.093 | OrdinaryDividend |
Mar 29, 2018 | $0.094 | OrdinaryDividend |
Feb 28, 2018 | $0.091 | OrdinaryDividend |
Jan 31, 2018 | $0.120 | OrdinaryDividend |
Dec 29, 2017 | $0.167 | OrdinaryDividend |
Nov 30, 2017 | $0.112 | OrdinaryDividend |
Oct 31, 2017 | $0.112 | OrdinaryDividend |
Sep 29, 2017 | $0.112 | OrdinaryDividend |
Aug 31, 2017 | $0.112 | OrdinaryDividend |
Jul 31, 2017 | $0.112 | OrdinaryDividend |
Jun 30, 2017 | $0.112 | OrdinaryDividend |
May 31, 2017 | $0.112 | OrdinaryDividend |
Apr 28, 2017 | $0.140 | OrdinaryDividend |
Mar 31, 2017 | $0.140 | OrdinaryDividend |
Mar 02, 2017 | $0.112 | OrdinaryDividend |
Jan 31, 2017 | $0.112 | OrdinaryDividend |
Dec 29, 2016 | $0.112 | OrdinaryDividend |
Nov 30, 2016 | $0.112 | OrdinaryDividend |
Oct 31, 2016 | $0.112 | OrdinaryDividend |
Sep 28, 2016 | $0.150 | OrdinaryDividend |
Aug 31, 2016 | $0.075 | OrdinaryDividend |
Jul 29, 2016 | $0.124 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Apr 01, 2018
4.17
4.2%
Dustin Lewellyn, CFA. Mr. Lewellyn has extensive background in institutional investment process with a specific focus on exchange-traded funds (“ETFs”). Mr. Lewellyn was a portfolio manager at BGI (now part of Blackrock), and he managed a number of international equity funds. Dustin also was head of ETF product management and product development at Northern Trust where he oversaw the build out and management of all areas of a new ETF business, including primary responsibility for the portfolio management process surrounding the ETFs. Mr. Lewellyn also built and ran a new ETF business for Charles Schwab, including having primary responsibility for the technology and investment process to support portfolio management for the ETFs. Mr. Lewellyn started a consulting business with a focus on ETFs and helped numerous new ETF sponsors, as well as service providers, understand the resource requirements to participate in the industry utilizing current best practices. Mr. Lewellyn holds a B.A. from University of Iowa and is a CFA Charterholder. He also holds security licenses 7, 63, 66 and 24.
Start Date
Tenure
Tenure Rank
Apr 01, 2018
4.17
4.2%
Mr. Tong has been a managing director with Penserra since 2015. Prior to joining Penserra, Mr. Tong spent seven years as a vice president at Blackrock, where he was a portfolio manager for a number of the iShares ETFs, and prior to that, he spent two years in the firm’s index research group.
Start Date
Tenure
Tenure Rank
Apr 01, 2018
4.17
4.2%
Anand Desai. Mr. Desai has been an Associate with Penserra since 2015. Prior to joining the Penserra Capital Management, LLC, Mr. Desai was a portfolio fund accountant at State Street for five years.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.09 | 30.32 | 7.8 | 11.42 |
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