SSgA Unveils Preferred Stock ETF

State Street Global Advisors (SSgA) announced SPDR Wells Fargo Preferred Stock ETF (symbol: PSK) began trading on the NYSE Arca today with an annual 0.45% expense ratio.

The SPDR Wells Fargo Preferred Stock ETF seeks to track the performance of the Wells Fargo Hybrid and Preferred Securities Aggregate Index, according to a news release.

The index includes non-convertible preferred securities listed on the NYSE or NYSE Arca that have a par amount of $25; are rated investment grade by Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services; and have a minimum monthly trading volume during each of the last six months of at least 250,000 trading units.  As of July 31, the index provides exposure to more than 160 securities.

“The SPDR Wells Fargo Preferred Stock ETF provides financial advisers and investors with improved access to the benefits of this unique asset class, which include high yields and a low correlation to both bonds and common stock,” said Anthony Rochte, SSgA senior managing director.