skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. PGX: am a senior looking to invest for income with preservation of capital, do preferred EFT fill this requirement? [Invesco Preferred ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: am a senior looking to invest for income with preservation of capital, do preferred EFT fill this requirement? already own CPD, looking at PGX for US exposure. what other names might fill this requirement

Asked by Ron on May 27, 2021
5i Research Answer:

Preferreds rank higher than common shares, but lower than bonds. But for a conservative investor we think they can form part of a portfolio allocation. They still do fluctuate with interest rates, so time frame is important to allow for interest rate volatility to balance out over time. We are comfortable with the sector, but they are not guaranteed. An ETF of course offers better diversification. We would be very comfortable with PGX with a 5-year return of 5.6%.