Preferred stocks are a type of security that is above common stock in a company's capital structure and often pay higher dividend yields.
Preferred ETFs offer the most attractive yield relative to bond ETFs in our coverage," the note said.
Bank of America gave buy-equivalent ratings to three funds in this category: the iShares Preferred and Income Securities ETF (PFF) , the Global X U.S.
Preferred ETF (PFFD) and the VanEck Preferred ex-Financials ETF (PFXF) .
"During the 2008/9 great financial crisis (GFC), high exposure to financials weighed heavily on preferred stock returns, as it has done today.
Persons:
Jared Woodard, PFFD, VanEck's PFXF, Van Eck, financials, preferreds, Woodard, — CNBC's Michael Bloom
Organizations:
Bank of America, Securities ETF, Global, U.S . Preferred, Financials