📈   PFF: Assessing The Outlook Versus Floating Rate VRP

Investing

Readers who have been following my work will know that I hold a substantial position in the Invesco Variable Rate Preferred ETF (VRP). I started purchasing this ETF back in early 2022 when I was worried that interest rate increases were on their way. Investors familiar with fixed income investments like bonds and preferred shares will understand that the economic value of fixed income securities drops when interest rates (technically yields) are rising. Therefore, by my reasoning, a floating/variable rate preferred stock fund was likely going to protect my capital from such rate increases.

seekingalpha.com     Jul 25, 2024