Invesco Preferred ETF (PGX)
XMEX 
Summary
PGX Chart
PGX ETF: Too Many Red Flags
We think the Invesco Preferred ETF's duration of 9.47 years is concerning in today's volatile interest rate environment, making it less desirable for risk-averse investors. The ETF's 70%+ concentration in financials introduces sector risk, especially given the current economic uncertainty and potential for cyclical reversion. Spread and discount rate risks have entered the building, meaning preferred shares a probably worth cherry-picking.
PGX: Nothing To Like Here, But We Have An Alternative
PGX's passive structure and retail investors' lack of effort lead to overvaluations; alternatives can outperform PGX with better yields and credit ratings. PGX invests in fixed-rate preferred stocks, baby bonds, and securities above par, but suffers from high management fees and suboptimal trading practices. Our alternatives offer higher yields and better credit ratings without management fees, providing superior returns compared to PGX's portfolio.
2 Preferred Stock ETFs for 2025
Preferred stock ETFs may be a compelling opportunity for 2025. Tailwinds for preferred ETFs this year include deregulation, stable interest rates, and a steepening yield curve.
Invesco Preferred ETF (PGX) FAQ
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Invesco Preferred ETF Profile
| XMEX Exchange | US Country |
Overview
This company operates as an investment entity, primarily focusing on the fixed income market, particularly U.S. dollar-denominated preferred securities. It dedicates at least 80% of its total assets to investments in components of a specific index. The selection of these securities is conducted under the strict guidelines and procedures overseen by ICE Data Indices, LLC. This is to ensure that the company's portfolio aligns with the characteristics and performance of the market capitalization-weighted index, which aims to represent the preferred securities market effectively.
Products and Services
- Investment in Preferred Securities
The company specializes in investing in preferred securities that are U.S. dollar-denominated and fixed rate, intending to offer investors exposure to this specific segment of the financial market. This product is designed for those seeking investments that potentially provide stable returns in the form of interest or dividends from preferred stocks.
- Index-Based Asset Allocation
Utilizing a market capitalization-weighted index, the company employs a strategy to measure and replicate the performance of the U.S. dollar-denominated preferred securities market. This approach offers investors a diversified exposure to the preferred securities market, adhering to a methodology guided by ICE Data Indices, LLC for the selection and weighting of securities.
Contact Information
