State Street Launches Preferred Stock ETF

The SPDR Wells Fargo Preferred Stock ETF (PSK) was launched by State Street Global Advisors yesterday.

The new ETF tracks the performance of the Wells Fargo┬« Hybrid and Preferred Securities Aggregate Index.

The index includes non-convertible preferred securities listed on the NYSE or NYSE Arca that have a par amount of $25; are rated investment grade by Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services; and have a minimum monthly trading volume during each of the last six months of at least 250,000 trading units.

As of July 31, 2009, the index provides exposure to more than 160 securities.

The expense ratio is 0.45%.  The dividend yield for the index is 7.59%.

For more ETF investing choices, see the dividend ETF directory.