Trying To Beat VRP With One Of Its Own Holdings - MS.PR.A

MS-A preferred stock is currently undervalued by about $2 relative to VRP, presenting a mean reversion opportunity. A pair trade - long MS-A, short VRP - can lock in this valuation gap, with manageable borrow fees for VRP. Directional investors may consider swapping VRP for MS-A to capture potential alpha as MS-A potentially reverts to historical pricing.

Seeking Alpha • Jul 6, 2025

Say No To Fixed-Rate Preferred Stocks With VRP

VRP's portfolio consists of 85 exchange-traded holdings with an average credit score close to Baa3, split into bonds (13%) and preferred stock (87%). OTC Preferred stocks represent close to 50% of the entire portfolio of VRP. Investors have access to the better-priced fixed-to-floating and reset rate preferred stocks via VRP.

Seeking Alpha • Mar 26, 2025

VRP: A Preferred ETF Looking Safer Than Its Peers

The Invesco Variable Rate Preferred ETF invests in preferred stocks and similar securities whose rates adjust periodically to reflect market interest rates. VRP looks a good choice for investors seeking exposure in preferred stocks with a relative low risk of capital decay compared to peers. However, inflation may take its toll and the heavy weight of financials in the portfolio incurs a systemic risk.

Seeking Alpha • Mar 23, 2025

Top Preferred Equity ETFs For High Monthly Dividends: Up To 7% Yields

The article evaluates various preferred securities ETFs, focusing on their dividend yields and performance metrics according to yield growth or sustainment. Most preferred equity ETFs are down big after rate hikes started. If you believe the 10 year is finally stabilizing and headed downward, now might be a good time to pick up some high yield rate sensitive plays.

Seeking Alpha • Feb 24, 2025

2 Preferred Stock ETFs for 2025

Preferred stock ETFs may be a compelling opportunity for 2025. Tailwinds for preferred ETFs this year include deregulation, stable interest rates, and a steepening yield curve.

ETF Trends • Jan 8, 2025

Ease Any Fixed Income Angst With This Preferred ETF

Rate cuts shouldn't induce any angst for equities investors, but for fixed income investors, this could affect the income of their current portfolio. This is where exchange-traded funds (ETFs) focused on preferred stock can help.

ETF Trends • Dec 28, 2024

4 Invesco Fixed Income ETFs for 2025

As investors prepare portfolios for the new year, four fixed income ETFs are worth consideration for 2025. 1. Invesco Senior Loan ETF (BKLN) As investors look for fixed income ETFs well-positioned for 2025, bank loans should not be overlooked.

ETF Trends • Dec 5, 2024

VRP: The Value May Not Justify The Fees

VRP tracks the ICE Variable Rate Preferred & Hybrid Securities Index, offering a 5.33% yield at a 0.50% expense ratio. It has outperformed a lot of its peers, but in a generally low-interest-rate environment, other ETFs can offer equally good returns with better consistency and less risk. Also, VRP carries significant sector concentration risk, with nearly two-thirds of the funds in financials, and includes a lot of below-investment-grade preferred stocks.

Seeking Alpha • Oct 25, 2024

Still Flying 'VRP Air' After The Distribution Increase

I've been long on the Invesco Variable Rate Preferred ETF since 2022, and have increased my position in recent months in expectation of higher monthly distributions. VRP recently declared an October distribution of $0.1428, a sequential increase of 30%, and the highest so far in 2024. I see continued blue skies for VRP in the next half-year, on the basis of the reset structure, the ETF's duration, and Fed Funds expectations.

Seeking Alpha • Oct 23, 2024

Best-Performing Bond ETFs For 2024

2024 has been a tough year for most bond funds, as delayed rate hikes led to lower bond prices. Some bond ETFs have managed to outperform in spite of these tough conditions. These tend to focus on investments with low, sometimes negative, duration.

Seeking Alpha • Jul 23, 2024