Invesco Variable Rate Preferred ETF

VRP

Market cap $2.21B

Overview Fund Activity

24.86 USD

-0.01

0.04%

At close Updated Sep 17, 4:00 PM EDT

1 day

-0.04%

5 days

0.36%

1 month

1.39%

3 months

2.05%

6 months

2.18%

Year to date

2.52%

1 year

1.47%

5 years

-0.24%

10 years

2.43%

Financials Asset Management

0

Funds holding %

of 7,463 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

131% more first-time investments, than exits

New positions opened: 30 | Existing positions closed: 13

5% more funds holding

Funds holding: 242 [Q1] → 255 (+13) [Q2]

1.69% more ownership

Funds ownership: 54.95% [Q1] → 56.63% (+1.69%) [Q2]

2% more capital invested

Capital invested by funds: $1.13B [Q1] → $1.15B (+$27.1M) [Q2]

9% less repeat investments, than reductions

Existing positions increased: 82 | Existing positions reduced: 90

80% less funds holding in top 10

Funds holding in top 10: 5 [Q1] → 1 (-4) [Q2]

See Fund Rankings

Financial journalist opinion

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

4 Invesco Fixed Income ETFs for 2025

As investors prepare portfolios for the new year, four fixed income ETFs are worth consideration for 2025. 1. Invesco Senior Loan ETF (BKLN) As investors look for fixed income ETFs well-positioned for 2025, bank loans should not be overlooked.

4 Invesco Fixed Income ETFs for 2025

VRP: The Value May Not Justify The Fees

VRP tracks the ICE Variable Rate Preferred & Hybrid Securities Index, offering a 5.33% yield at a 0.50% expense ratio. It has outperformed a lot of its peers, but in a generally low-interest-rate environment, other ETFs can offer equally good returns with better consistency and less risk. Also, VRP carries significant sector concentration risk, with nearly two-thirds of the funds in financials, and includes a lot of below-investment-grade preferred stocks.

VRP: The Value May Not Justify The Fees

Still Flying 'VRP Air' After The Distribution Increase

I've been long on the Invesco Variable Rate Preferred ETF since 2022, and have increased my position in recent months in expectation of higher monthly distributions. VRP recently declared an October distribution of $0.1428, a sequential increase of 30%, and the highest so far in 2024. I see continued blue skies for VRP in the next half-year, on the basis of the reset structure, the ETF's duration, and Fed Funds expectations.

Still Flying 'VRP Air' After The Distribution Increase

Best-Performing Bond ETFs For 2024

2024 has been a tough year for most bond funds, as delayed rate hikes led to lower bond prices. Some bond ETFs have managed to outperform in spite of these tough conditions. These tend to focus on investments with low, sometimes negative, duration.

Best-Performing Bond ETFs For 2024

VRP: Assessing My Floating Rate Preferred ETF As Interest Rates Set To Decrease

The Invesco Variable Rate Preferred ETF has outperformed in a rising rate environment due to its low duration and floating rate nature. VRP is weighted heavily towards the financial sector - investors should be keenly aware of this. Despite anticipated interest rate cuts, VRP's preferred stock holdings may continue to reset at higher dividends until at least 2025. This means I will continue to rate VRP a Buy.

VRP: Assessing My Floating Rate Preferred ETF As Interest Rates Set To Decrease

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