Passing On Preferreds ETF (PGF)
The ETF Professor has been watching the PowerShares Financial Preferred ETF (NYSE: PGF) for a little while now and thinks it's a candidate for a short unless you're an investor with a very long time horizon.
PGF holds preferred stocks in firms like Bank of America (NYSE: BAC), J.P. Morgan Chase (NYSE: JPM) and MetLife (NYSE: MET) and several international financial services firms. As such, PGF offers a strong 9% yield, which should be attractive for those with long-term time horizons.
That said, the technicals appear as the chart attached indicates. PGF gapped below its 50-day moving average today and is trading lower on more than twice its average daily volume. In addition, down volume has been increasing in recent days, indicating the bears may have their sights set on PGF.
