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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.
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.
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.
Ameritas Advisory Services LLC trimmed its holdings in shares of Invesco Variable Rate Preferred ETF (NYSEARCA:VRP) by 95.4% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,545 shares of the company's stock after selling 52,564 shares during the period. Ameritas
NPFI: Low-Volatility Preferred ETF
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.
Brown Lisle Cummings Inc. reduced its stake in shares of Invesco Variable Rate Preferred ETF (NYSEARCA:VRP) by 59.7% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 19,827 shares of the company's stock after selling 29,391 shares during the period. Brown Lisle
Boston Family Office LLC boosted its stake in shares of Invesco Variable Rate Preferred ETF (NYSEARCA:VRP) by 4.4% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 243,581 shares of the company's stock after acquiring an additional 10,288