Elkhorn S&P High Quality Preferred exchange-traded fund begins trading

By Angela McDaniels

Tacoma, Wash., May 24 – Elkhorn Investments, LLC announced the launch of the Elkhorn S&P High Quality Preferred exchange-traded fund on the BATS Global Markets Exchange under the ticker symbol “EPRF.”

The new ETF tracks the S&P U.S. High Quality Preferred Stock index, which selects fixed-rate investment-grade preferred issues from U.S. listed preferred stocks and overweights cumulative versus non-cumulative preferreds.

The company noted that the index underlying the ETF has only investment-grade issues, while the S&P U.S. Preferred Stock index has 58% speculative or non-rated issues. The indexes’ yields were 5.75% and 6.34%, respectively, as of May 16, according to the news release.

“Investment-grade and cumulative preferreds have historically provided lower drawdowns compared with the broader preferred market,” Graham Day, senior vice president and head of product and research at Elkhorn, said in the news release.

“EPRF is unique in that it offers preferred investors tactical opportunities to improve the credit quality of their preferred allocation. Most preferred ETFs on the market today tend to overweight junk rated issues, which can negatively impact the portfolio in down markets.”

Elkhorn is a boutique structuring firm based in Wheaton, Ill., and a strategic partner of Barclays.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.