Powershares Source has launched the PowerShares Preferred Shares UCITS ETF EUR Hgd Dist on Xetra and Börse Frankfurt.
The firm writes that the bond index ETF enables investors to participate in the performance of US preferred shares. These are fixed-rate, hybrid capital instruments (preferred securities) denominated in US dollars and issued in the US domestic market. Such securities must have a minimum rating of B3 and an investment-grade country rating. This share class uses a hedging strategy to hedge the exchange rate risk between the US dollar and the euro.
Ongoing charges per annum are 0.55 per cent and the distribution policy is distributing.
