ETFs may trigger an investor stampede out of preferred stocks. That's a concern addressed by Brendan Conway in the "Focus on Funds" column in Barron's.

Since the indexed high-yield bond market is supposed to rise faster than the rest of the market when it's bullish, thanks to instant tradability, ETFs may be an "accelerant" for when the market turns bearish. If you subscribe to that theory, people should look to see if the same trend pans out in preferred stocks, Barron's.

The pub singles out the iShares S&P Preferred Stock Index Fund [profile] as an ETF in the niche. 

Edited by: Casey Quinlan


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