New ETFs On The Block: Powershares Variable Rate Preferred Portfolio ETF (VRP)

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PowerShares, the exchange-traded fund unit of Invesco and the fourth-largest sponsor of ETFs in the US, launched the PowerShares Variable Rate Preferred Portfolio ETF (VRP) on May 1. The fund is US’s first variable rate preferred stock ETF product. Preferred stocks have been the toast of institutional investors due to their potential for price appreciation and impressive dividend yields. Yet …