- As of Nov 4, 2026, ETFIQ covers 23 preferred stock ETFs, with a median fee of 0.50%, and ETFIQ files them with bond funds.
In plain words
A preferred stock ETF owns preferred shares. They sit between bonds and common stock: a fixed payout, paid before common holders but after bondholders if the firm is in trouble.
ETFIQ counts 23 funds and sorts them with bond funds because they pay steady income and move with interest rates. The median fee is 0.50%. Banks and insurers issue many, so a fund can lean to financials. Payouts can be skipped in hard times, and many shares can be called back early.
Questions
- Why is preferred stock in the Bonds category?
It pays fixed income and reacts to rates like a bond. ETFIQ places funds by what they own and how they behave.
- Are preferred payouts guaranteed?
No. The issuer can skip them.
- What is a call?
The issuer can repurchase the shares at a set price after a set date.