EPRF: New US Preferred Stock ETF by Elkhorn

Elkhorn, begun trading a new US Preferred Stock ETF, the Elkhorn S&P High Quality Preferred ETF (BATS: EPRF) on  Tuesday, May 24, 2016.
Here is a synopsis of the new ETF:



Symbol: EPRF Exchange: BATS
Name: Elkhorn S&P High Quality Preferred ETF Net Expense Ratio: 0.47%


The Elkhorn S&P High Quality Preferred ETF seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P U.S. High Quality Preferred Stock Index.

The S&P U.S. High Quality Preferred Stock Index is designed to provide exposure to U.S.-listed preferred stocks that meet the following minimum size, liquidity, type of issuance, and quality criteria:

Initial Universe.
To be eligible for the Index, a preferred stock must be included in both the S&P U.S. Fixed Rate Preferred Stock Index and the S&P U.S. Investment Grade Preferred Stock Index as of the reference date. The S&P U.S. Fixed Rate Preferred Stock Index comprises preferred stocks that pay dividends at a fixed rate; a fixed-rate preferred stock pays a fixed dividend for its entire term.

Market Capitalization.
Preferred stocks must have an outstanding market capitalization of more than $100 million as of the reference date to be included in the Index.

Preferred stocks that do not trade on a public market are excluded from the Index.

Preferred stocks that have traded more than 250,000 shares per month over the previous 6 months are eligible for inclusion. Issues with fewer than six months of trading history are evaluated over the available period and may be included should size and available trading history infer the issue will satisfy this requirement.

Indicated Yield.
Preferred stocks for which the Index Provider cannot determine an indicated dividend yield are not eligible.

Preferred stocks must be considered investment grade with a credit rating minimum of BBB-/Baa3/BBB- issued by S&P, Moody’s, and Fitch, respectively. For an issue rated by all of S&P, Moody’s, and Fitch, the lowest of the three ratings is used as the issue’s credit rating. When there are two ratings, the lower of the two ratings must be considered investment grade. When there is only one rating, that rating must be considered investment grade. Defaulted securities are removed at the first rebalancing of the Index.


Fund Top Holdings (05/24/16):

Aegon N.V. 2.84%
SCE Trust I 2.82%
Kimco Realty Corp 2.81%
National Retail Properties 2.79%
SCE Trust Ii 2.79%
PS Business Parks Inc 2.78%
PS Business Parks Inc 2.78%
Wells Fargo REIT 2.77%
National Retail Properties 2.77%
PS Business Parks Inc 2.77%

Fund Sector Allocation (05/24/16):

Financials 86.60%
Utilities 11.38%
Industrials 1.34%
Consumer Discretionary 0.34%
Telecommunication Services 0.34%



Useful Links:
EPRF Home Page


Category: Equities> Regions> USA> US Income> US Preferred


ETFtrack comment:
EPRF is the second ETF from Elkhorn to be listed on Bats. Elkhorn was founded by ETF industry pioneer Ben Fulton and the firm seeks to design innovative investment solutions for the ETF marketplace.

Preferred stock: is a class of equity security that pays a specified dividend that must be paid before any dividends can be paid to common stockholders, and which takes precedence over common stock in the event of the company’s liquidation. Although preferred stocks represent a partial ownership interest in a company, preferred stocks generally do not carry voting rights and have economic characteristics similar to fixed-income securities. Preferred stocks generally are issued with a fixed par value and pay dividends based on a percentage of that par value at a fixed or variable rate. Additionally, preferred stocks often have a liquidation value that generally equals the original purchase price of the preferred stock at the date of issuance.

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