5 of the Best Preferred Stock ETFs for High and Stable Dividends

The best preferred stock ETFs allow you to reduce your risk by investing in baskets of preferred stocks.

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Preferred stocks typically don't even make the podium as it pertains to what investors plan on including in their portfolios. But if you're an income investor and you don't already have these stocks on your radar, you'll want to give preferreds – and specifically, preferred stock ETFs – a look.

You'll frequently hear preferred stocks referred to as "hybrid" securities. That's because they carry some elements of common stock (what you typically mean when you say "stock") and bonds. For instance, preferred stocks represent ownership in a company and trade on exchanges – just like common stock. However, they typically don't include any voting rights – just like bonds.


Data is as of February 7. SEC yield reflects the interest earned for the most recent 30-day period after deducting fund expenses. SEC yield is a standard measure for preferred stock funds. 

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Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.