The Invesco Preferred ETF (PGX) is an exchange-traded fund designed to track the performance of an index composed of preferred securities issued by companies across various sectors, including financial institutions and large corporations. The ETF is managed by Invesco Ltd. and trades under the ticker PGX on the NASDAQ.

Classified as a hybrid fixed-income ETF with a yield focus, PGX aims to reflect, before fees and expenses, the aggregated performance of an index of preferred stocks, which combine features of both fixed-income and equity investments, offering higher dividend yields compared to common stocks. To achieve this objective, the fund employs a passive replication strategy of its reference index.

The reference index is weighted by free-float–adjusted market capitalization and includes securities that meet liquidity, credit quality, and yield criteria. The index undergoes periodic reviews for inclusion, exclusion, and rebalancing, a process mirrored by the ETF.

Diversification and sector exposure

PGX provides exposure to diversified preferred securities issuers, offering a blend of fixed-income-like yield and equity-like characteristics. Sector diversification includes:

• Financial institutions and banks.
  

• Insurance and financial services.
  

• Broad-cap corporations across various industries.
  

• Corporate issuers of preferred securities.
  

This composition allows the ETF to reflect a broad range of issuers utilizing preferred securities for capital raising.

Structure and costs

Shares of PGX trade on the secondary market, while creation and redemption transactions are carried out by authorized participants, helping maintain the ETF’s market price close to its net asset value (NAV).

The fund features a competitive management fee, typical of yield-focused income ETFs, and does not charge a performance fee. PGX does not offer multiple share classes and trades exclusively under the ticker PGX.

History and evolution of the ETF

The Invesco Preferred ETF was launched to offer investors an efficient way to gain exposure to preferred securities issued by U.S. and international companies through a single exchange-traded instrument.

Since inception, the fund has consolidated liquidity and attracted investors seeking relatively higher income from hybrid equity-income instruments.

Over time, the ETF has maintained its focus on replicating its reference index, with periodic portfolio updates aligned with index revisions and no significant changes to its investment policy.

In recent years, PGX reflected the dynamics of preferred securities markets amid changing macroeconomic conditions, interest-rate cycles, and income-seeking capital flows, while maintaining broad usage among institutional and individual investors.

Additional Information

Invesco Preferred ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $3.65 billion.

Over the past 12 months, Invesco Preferred ETF recorded a return of -7.49%, with its price trading between $9.84 and $11.51 during the same period.

The ETF is traded under the ticker PGX.