ETF to Buy #5 – PowerShares Preferred Portfolio ETF (PGX)
The PowerShares Preferred Portfolio ETF (NYSE:PGX) invests in the BofA Merrill Lynch Core Fixed Rate Preferred Securities Index. The fund’s holdings are primarily (98%) in preferred stocks in the financial services industry.
Thus, this investment is appropriate for investors who anticipate better growth for the banks and also wish to receive a high dividend return. The distribution yield from PGX is 6.46%.
Technically a new uptrend began when prices rose through the 50-day and 200-day moving averages on Jan. 3. Note the buy signal from the stochastic and the current support from the 50-day moving average at $14.35 to the support line at $14.22.