The newly introduced ETF is the 50th ETF in Market Vectors family, which narrates the success story of Market Vectors, the firm said.
The fund manager claims that PFXF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Wells Fargo Hybrid and Preferred Securities ex Financials Index.
Market Vectors product manager Brandon Rakszawski said in developing PFXF, the company wanted to offer access to the income potential of preferred securities but limit potential volatility by excluding financials, which has been the most volatile sector in recent years.
"We’re please to be able to offer this unique take on the preferred securities market while also launching PFXF with the lowest published net expense ratio of the preferred securities-focused ETFs currently listed in the U.S.," Rakszawski said.
The Fund joins an array of 14 income-oriented ETFs including six municipal income ETFs, high-yield bond ETFs such as Market Vectors Fallen Angel High Yield Bond ETF (ANGL) and Market Vectors International High Yield Bond ETF (IHY) and dividend-focused offerings, such as Market Vectors Mortgage REIT Income ETF (MORT).
Currently, the Market Vectors family had $23.8bn in assets under management, placing it as the fifth largest ETP family in the US and the eighth largest worldwide, as of 30 June 2012.
