iShares Dow Jones EPAC Sel Div Ind (ETF) (NYSEARCA:IDV) has a total asset base of approximately $3 billion and a dividend yield of 5.37%, the financial sector accounts for 30% of the its total holdings. It is an ideal investment for people looking at high dividend yielding international securities, as it tracks 100 such securities representing Europe, Pacific, Asia and Canada (EPAC) regions. The fund has a high concentration of Australian and British stocks which form almost 40% of its total assets. It has a number of blue chips in its portfolio with Astra Zeneca, Shell, Commonwealth Bank of Australia, Macquarie and BAT representing its top five holdings. This ETF also provides a good way for USA investors to diversify their asset holdings while earning a good dividend income.
iShares S&P US Pref Stock Idx Fnd (ETF) (NYSEARCA:PFF) tracks the S&P US Preferred Stock Index for stocks which have a market capitalization of at least $100 million. With total assets worth $17.3 billion, this ETF has a dividend yield of 5.79% and is trading at 12.2 times its earnings. Since dividend from preferred stock is fixed and enjoys a higher priority over other normal stock, it is less risky than normal dividend yielding ETFs. The top holdings of this ETF are Wells Fargo & Co (NYSE: WFC), Allergan Plc (NYSE: AGN), HSBC holdings (NYSE: HSBC) and Barclays (NYSE: BCS). Banks and financial stocks form almost 60% of its holdings while its exposure to USA listed stocks is more than 80% of its assets. Though the financial sector has performed poorly, this ETF has been relatively unaffected as the dividends for the preferred stocks are not expected to decline. The number of funds we track that hold a position in PFF increased to six from four during the second quarter, but the corresponding value of their holdings declined by 15% to $7.7 million.
PowerShares Preferred Portfolio (ETF) (NYSEARCA:PGX) tracks the performance of the BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index and invests in stocks in fixed-rate US dollar denominated preferred securities issued in the domestic market with a minimum credit rating of B3. With the Fed delaying raising the interest rates, PowerShares Preferred Portfolio (ETF) (NYSEARCA: PGX) has become quite popular as is evident from a 150% increase in the total value of positions owned by the investors in our database in the second quarter. The number of funds that hold the ETF inched up by one to three during the second quarter, while the total value of their holdings amounted to $4.53 million at the end of June. This ETF has a heavy exposure towards the financial sector with almost three-fourth of its holdings being focused in this sector. With total assets over of $4.6 billion, the fund is trading near its yearly highs at approximately $15. The fund has a 13% allocation towards Barclays (NYSE:BCS), HSBC Holding (NYSE: HSBC) and Wells Fargo (NYSE: WFC) which are its top three holdings. PGX sports a dividend yield of 5.75%.
Disclosure: none
