One ETF Saw Its Possible Yield Plunge Overnight

Investors in the $4.9 billion PowerShares Preferred Portfolio, one of the biggest funds focusing on preferred shares, last month found that a huge chunk of their potential returns had vanished in short order.

A key measure of the exchange-traded fund’s yield plunged by nearly 3 percentage points on March 22. The change came because the index the fund tracks switched the way it calculates the metric known as yield to worst, which indicates the investor’s income from the fund in a worst-case-scenario.

from FA News http://www.fa-mag.com/news/one-etf-saw-its-possible-yield-plunge-overnight-32452.html

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