PGF ETF

Invesco Financial Preferred ETF focuses on preferred stocks of financials companies. PGF shows a 2-digit decrease in both price and distributions over the last 10 years. PGF concentration in banks seems to be an additional factor of risk, as it has underperformed a preferred stocks ETF excluding financials.

The Invesco Financial Preferred ETF provides a higher yield and less volatility than regular stocks, making it a potential asset for investment portfolios. The PGF ETF mainly invests in fixed-rate preferred securities issued by U.S. financial companies. While the fund's concentration on the financial sector poses risks, it also offers a chance for consistent dividend payouts.

Invesco Financial Preferred ETF invests in fixed rate preferred securities issued by financial companies in the U.S. domestic market. The PGF ETF is overweight in banks, shows a high volatility, and has lost over 40% in share price since inception. Past performance looks bad relative to a preferred stock ETF excluding financials, making the strategy even less attractive.

The Invesco Financial Preferred ETF (PGF) holds fixed-rate preferred shares of financial companies. There are two main risks to PGF. First, rising long-term interest rates cause MTM losses for fixed-rate preferred shares. More importantly, financial preferred shares have heightened systemic risks that are as prevalent with other sectors, as was shown in the recent regional bank crisis.