Bringing you live news and features since 2006 

iShares launches first international preferred stock ETF

RELATED TOPICS​

BlackRock’s iShares Exchange Traded Funds business has launched the iShares S&P International Preferred Stock Index Fund (nyse arca:IPFF) on the NYSE Arca. The fund is the first ETF that offers access to local currency, preferred securities that are offered in developed markets outside the US.

The new ETF joins its US focused counterpart, the iShares S&P US Preferred Stock Index Fund (nyse arca:PFF), which had USD7.2 Billion in Assets Under Management (AUM)(1).

International preferred securities — income generating securities that are senior to common stock but subordinate to fixed income — can be a compelling investment alternative for investors who are seeking to diversify outside of the US and away from the US dollar.

"Income-seeking investors are starved for yield opportunities, but traditional income sources today are offering historically low yields," says Darek Wojnar, Head of iShares Product Development at BlackRock. "At the same time, it’s been challenging for investors to easily tap into potentially attractive income sources beyond their home markets. "Our international preferred stock ETF is designed to uniquely address this need, giving investors ready access to a diversified basket of preferred securities in tandem with the benefits of non-US country and currency exposures.”

The iShares S&P International Preferred Stock ETF provides investors an opportunity to participate in several of today’s most attractive country markets, as part of its access to the non-US preferred securities category. The fund is benchmarked to the S&P International Preferred Stock Index, a market-cap weighted, quarterly rebalanced index. The top country weights are Canada followed by the UK and New Zealand.

"Canada, in particular, is drawing increasing investor notice as one of a group of relatively smaller, developed countries that are less burdened by debt and structural deficits, and that also enjoy better growth prospects than the larger developed nations," Wojnar says. "The new iShares International Preferred Stock ETF is a highly flexible approach for adding exposure to such markets with an associated diversification benefit."

The index has a heavy tilt towards financials, a common trait among preferred securities. The largest country and sector representation is Canadian Financials at 59% of market capitalisation.
 

Latest News

Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..
First Trust has announced the launch of the First Trust Vest U.S. Equity Moderate Buffer UCITS ETF – February GFEB..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by