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Invesco Variable Rate Preferred ETF

VRP

Market cap $2.97B

23.78 USD

-0.04

0.17%

At close Updated Sep 25, 4:00 PM EDT

Pre-market

After hours

23.83

+0.05

0.21%

1 day

-0.17%

5 days

-1%

1 month

-1.45%

3 months

-2.14%

6 months

-1.12%

Year to date

-2.46%

1 year

-3.72%

5 years

-9.55%

10 years

-6.85%

News

Positive

Neutral

Negative

Sentiment 3-Months

Positive 66.7%

Neutral 33.3%

Negative 0%

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Treasuries Pay 4 Percent. These 3 ETFs Pay Nearly Double and You Can Sell Them Any Day You Want.

With the 1-year Treasury yielding about 4% and the 6-month bill just under 4%, income investors face a familiar dilemma.

Treasuries Pay 4 Percent. These 3 ETFs Pay Nearly Double and You Can Sell Them Any Day You Want.

VRP: Preferred ETF Mitigating Interest Rate Risk

Invesco Variable Rate Preferred ETF offers moderate interest and credit risk, low volatility, and a stable asset value profile. VRP has outperformed key competitors in total return and Sharpe ratio since June 2020. With 92% exposure to financials, VRP presents sector and systemic risk despite its solid performance and low volatility.

VRP: Preferred ETF Mitigating Interest Rate Risk

Rate Cuts Aren't Guaranteed; Consider Preferred Stock ETF VRP

These days, forecasting what the Federal Reserve has in store for interest rates feels like a futile endeavor. Consensus wisdom indicates the central bank is highly unlikely to cut or raise rates this month, but after that, it's anyone's guess.

Rate Cuts Aren't Guaranteed; Consider Preferred Stock ETF VRP

VRP: Reassessing Positioning As The Rate Expectations Turns

The Invesco Variable Rate Preferred ETF (VRP) has delivered a 4.45% CAGR over five years, outperforming most long-duration fixed income funds during rising rate environments. With the US 10-year Treasury stable above 4% and potential rate cut expectations emerging, VRP faces reduced future return expectations both on absolute terms and relative terms. VRP's low duration and variable rate structure limit capital appreciation potential in a rate-cut scenario, while distributions may decline as underlying rates adjust downward.

VRP: Reassessing Positioning As The Rate Expectations Turns

VRP: Preferred ETF With Outstanding Risk-Adjusted Return

Invesco Variable Rate Preferred ETF (VRP) is a preferred stocks ETF with moderate credit and interest rate risk, but significant concentration risk in financials. VRP demonstrates high returns since June 2020 compared to preferred ETFs, with low volatility and shallow drawdowns. Despite flattish share price and distribution, VRP's total return has outpaced inflation since inception.

VRP: Preferred ETF With Outstanding Risk-Adjusted Return

Trying To Beat VRP With One Of Its Own Holdings - MS.PR.A

MS-A preferred stock is currently undervalued by about $2 relative to VRP, presenting a mean reversion opportunity. A pair trade - long MS-A, short VRP - can lock in this valuation gap, with manageable borrow fees for VRP. Directional investors may consider swapping VRP for MS-A to capture potential alpha as MS-A potentially reverts to historical pricing.

Trying To Beat VRP With One Of Its Own Holdings - MS.PR.A

Say No To Fixed-Rate Preferred Stocks With VRP

VRP's portfolio consists of 85 exchange-traded holdings with an average credit score close to Baa3, split into bonds (13%) and preferred stock (87%). OTC Preferred stocks represent close to 50% of the entire portfolio of VRP. Investors have access to the better-priced fixed-to-floating and reset rate preferred stocks via VRP.

Say No To Fixed-Rate Preferred Stocks With VRP

VRP: A Preferred ETF Looking Safer Than Its Peers

The Invesco Variable Rate Preferred ETF invests in preferred stocks and similar securities whose rates adjust periodically to reflect market interest rates. VRP looks a good choice for investors seeking exposure in preferred stocks with a relative low risk of capital decay compared to peers. However, inflation may take its toll and the heavy weight of financials in the portfolio incurs a systemic risk.

VRP: A Preferred ETF Looking Safer Than Its Peers

2 Preferred Stock ETFs for 2025

Preferred stock ETFs may be a compelling opportunity for 2025. Tailwinds for preferred ETFs this year include deregulation, stable interest rates, and a steepening yield curve.

2 Preferred Stock ETFs for 2025

Ease Any Fixed Income Angst With This Preferred ETF

Rate cuts shouldn't induce any angst for equities investors, but for fixed income investors, this could affect the income of their current portfolio. This is where exchange-traded funds (ETFs) focused on preferred stock can help.

Ease Any Fixed Income Angst With This Preferred ETF

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