Preferred Stock ETF (PGX) Hits New 52-Week High

For investors seeking momentum, Invesco Preferred ETF PGX is probably a suitable pick. The fund just hit a 52-week high and is up 15.1% from its 52-week low of $13.12 a share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

PGX in Focus

This fund provides investors with exposure to the fixed rate US dollar-denominated preferred securities issued in the U.S. domestic market.  It has key holdings in financials, utilities and real estate. The fund charges 52 bps in fees per year (see: all the Convertibles/CEFs/Preferred Stock ETFs here).

Why the Move?

The preferred stock corner of the broad market has been an area to watch lately given the volatility surrounding the trade deal. Preferred stocks are thus quite stable and generally have a low correlation with other income generating segments of the market like REITs, MLPs, corporate bonds and TIPs. It offers both substantial yields and the opportunity for capital appreciation.

More Gains Ahead?

It seems that PGX will remain strong given a higher weighted alpha of 8.10 and a lower risk as depicted by a 20-day volatility of 3.15%. As a result, there is definitely some promise left for investors who want to ride on this surging ETF a little further.

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Invesco Preferred ETF (PGX): ETF Research Reports
 
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