PGF Profile
The Invesco Financial Preferred ETF primarily invests in preferred securities issued by financial companies, with the aim of tracking the performance of an index designed to reflect this market segment. Under normal circumstances, the fund commits at least 90% of its total assets to the securities that make up its underlying index. This index, maintained by ICE Data Indices, LLC, is a market capitalization-weighted benchmark that captures the performance of U.S. dollar-denominated preferred securities and similar instruments that the index provider deems functionally equivalent.
The underlying index is specifically focused on fixed-rate preferred securities listed on U.S. exchanges. Preferred securities are a class of equity that generally offer higher yields compared to common stocks and come with preferential treatment in dividend payments and claims on assets in the event of liquidation. The index is designed to provide investors with exposure to a segment of the market that is typically associated with stable income and lower volatility compared to common stock.
Invesco Financial Preferred ETF targets securities issued by financial institutions, reflecting the sector's role in the preferred securities market. Financial companies, including banks and insurance firms, are significant issuers of preferred securities, which are often used to raise capital while offering investors a stable income stream. The ETFs strategy is to provide exposure to this specific asset class, leveraging the expertise of ICE Data Indices to ensure accurate and representative tracking of the financial preferred securities market.
The funds non-diversified nature means that it concentrates its investments in a narrow segment of the market financial preferred securitie thereby exposing investors to sector-specific risks and opportunities. By focusing on this asset class, the Invesco Financial Preferred ETF aims to deliver income and potential capital appreciation to investors who seek targeted exposure to the financial sectors preferred securities while benefiting from the indexs structured methodology and comprehensive market coverage.
|
