##  [# Daily ETF Watch: Preferred Fund Debuts](/sections/daily-etf-watch/daily-etf-watch-preferred-fund-debuts) 

 

# Daily ETF Watch: Preferred Fund Debuts

 

 

Elkhorn rolled out its third ETF, a preferred stock fund.



 

 

 

 

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[By ETF.com Staff](/contributors/etfcom-staff)

 May 24, 2016

 Edited by: ETF.com Staff

 

 

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Elkhorn Investments rolled out its third ETF on the Bats stock exchange today. The [Elkhorn S&amp;P High Quality Preferred ETF (EPRF)](https://www.sec.gov/Archives/edgar/data/1595106/000089180416001440/elk63303-485b.htm) comes with an expense ratio of 0.47%.

Preferred stocks are a sort of hybrid security that combines traits from both the fixed-income and equity spaces. For example, they pay a dividend based on a percentage of their par value and they give shareholders priority over common-stock owners in cases of distributions or liquidation.

The largest preferred stock ETF currently trading is the $15.5 billion [iShares U.S. Preferred Stock ETF (PFF | B)](https://www.etf.com/pff), which also charges an expense ratio of 0.47%. But while PFF can invest in preferred stocks without regard for credit rating, EPRF is limited to the investment-grade space—thus the “High Quality” portion of its name.

Components of EPRF’s index must also be U.S.-listed and pay a fixed-rate dividend, not a variable rate. Further, eligible securities need to have outstanding market capitalizations of at least $100 million and have traded at least 250,000 shares each month for the preceding six months.

Bats Global Markets is the owner of ETF.com.

*Contact Heather Bell at <hbell@etf.com>.*



 

 

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