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Preferred Stock Funds

Preferred Stock Funds

Income Investing and Dividend Stocks

Preferred stock is a hybrid security that has characteristics of both stocks and bonds. Income investors gravitate toward preferred stocks because they tend to pay large dividends, typically out-yielding common stocks as well as investment-grade corporate bonds. But buying a preferred stock is not as simple as buying a common stock. For starters, preferred stocks come in several share classes; this means lots of stock tickers. And not every brokerage is equipped to help you find and trade the exact preferred stock that you would like. For this reason, some investors choose to invest in preferred stocks via mutual funds and exchange traded funds.

If you're unfamiliar with preferred stock, we recommend that you read Harry Domash's excellent introduction to preferred stocks and Daniel Barnes's take on when to buy preferred stocks. If you've already learned the risks and rewards of preferred stock investing, this page contains popular mutual funds and ETFs that hold preferred stocks. You will not find closed-end funds listed here: Many closed-end preferred stock funds use leverage to amplify their yields (and risks). As a final word of caution, please note that actively-managed preferred stock funds tend to have above-average fees and a load to boot!

INCOME INVESTING CENTER:


» Find Dividend Paying Stocks

» Find Dividend Mutual Funds

» Find Top-Rated REITs

PREFERRED STOCK RESOURCES:


» Preferreds Online

» Quantum Online

» Choosing Preferred Stock Funds

DIVIDEND STOCK ADVISOR


If you'd like to add dividend stocks to your portfolio, but aren't sure where to begin, take a free trial of TheStreet's Dividend Stock Advisor. Written and managed by Portfolio Manager David Peltier, Dividend Stock Advisor is an easy to understand "system" that can steer you to ideal dividend stocks for your investment style and goals.

Preferred Stock ETFs

Preferred Stock Mutual Funds (Open-Ended)

Preferred Stock News

Holding short duration, non-public bonds has enabled fund manager Thomas Carney to boost the yield in the Weitz Short-Intermediate Income Fund.
6/26/14 1:25PM
Bill Ackman has convinced politicians to aid him in his short bet against Herbalife, but he won't lobby Washington on Fannie and Freddie.
5/20/14 11:46AM
ETF income investors can benefit from these strategic recommendations to enhance their returns in 2014.
4/3/14 12:18PM
The battle over Fannie Mae and Freddie Mac is heating up, which means this man will be very busy answering questions for the foreseeable future.
2/27/14 1:21PM
Organizing your portfolio can result in maximizing your returns over time.
2/21/14 11:52AM

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