You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
ETF.com Live Chat!
powered byJotCast
Prev Page View Full Chat
Dave Nadig
3:38
Which I suspect is why most of the good tools are expensive/professional grade.
Still, it would seem like brokerage platforms would do more here.
3:39
I'll do some poking, and if I find anything awesome, I'll write about it for the site!
OK, running a bit long, so last question here:
Danielle
3:39
Are "preferred ETFs" good for rising interest rate environments?
Dave Nadig
3:39
So the whole "preferreds in rising rates" discussion is always an interesting one.
3:40
On the surface, because they are "bondlike" the conventional wisdom is that the price of a preferred will be interest rate sensitive -- it goes down as rates go up.
3:41
But that said, there are a lot of preferred ETFs, and they mostly hold ones with floating returns that can theoretically adjust, so they should be less sensitive than a straight piece of debt.
And of course, there's yield to offset a potential decline in price...
3:42
So personally, I think it's an area to be cautious of -- you'll need to really understand the portfolio.  It's probably worth doing some deeper dives on issuer websites, and see if they explicitly address this issue.
It's VERY much the right question to be asking.  And hey, don't be afraid to make a phone call to the issuer as well, or use their contact info, if you don't find anything.
That's going to do it for today, sorry if I didn't get to your questions.
3:43
We'll have a transcript up shortly.
Thanks everyone, and have a great afternoon.
Connecting…