Deep Dive
Financials drop 2.4% after the Fed's first hike since 2023 and a Bank of America fee warning
Invesco Variable Rate Preferred ETF
$23.72+0.01 (+0.04%)
- 0.50%
- $3.0B
- +2.1%
- 6.22%
- 0.6M sh
- $23.70
- low $23.59high $24.85
The ETF.net VRP Grade
B
Score 67 out of 100
- 6 of 31
Score 67 of 100 falls in the B band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.B55 out of 100Rank 13 of 31Mission
Whether the fund did what it promised, tested against its stated mandate.B64 out of 100Rank 13 of 26Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.A78 out of 100Rank 3 of 31Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A75 out of 100Rank 9 of 31Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A76 out of 100Rank 6 of 29Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A86 out of 100Rank 4 of 31
Our read on VRP
BThe preferred fund built on coupons that move. VRP holds mainly floating and variable rate preferred stock and hybrid debt from US corporations, where payouts reset with market rates instead of locking in at issue, and it pays monthly.
The fund seeks high monthly income, with potential tax advantages, through investments in preferred stock and hybrid debt.
Why people hold it
- By mandate, at least 90% of assets sit in floating and variable rate US preferred stock and hybrid debt, so coupons reset with market rates rather than staying fixed for life.invesco.com
- Income is the stated job: high monthly income, with potential tax advantages, from preferred stock and hybrid debt. Distributions land monthly, not quarterly.
- Running since 2014 and now a multi-billion-dollar fund, it spreads the bet across roughly 400 holdings and trades actively on the exchange.
Worth knowing
- 0.50% a year, above the middle of the pack among index-tracking ETFs. The floating-rate niche carries a higher sticker than plain vanilla index exposure.
- Resets cut both ways. Coupons that climb when short-term rates rise also step down when rates fall, and the monthly income moves with them.invesco.com
- The mandate spans investment grade and below investment grade preferreds and hybrid debt, so credit quality inside the basket is mixed, not uniformly high.invesco.com
VRP Holdings
- Bonds
- 365
- 9%
- Bank of America Corp 6.63% 12/31/2099
Sectors
- Financials72.1%
- Real Estate20.7%
- Consumer Staples2.9%
- Utilities2.7%
- Energy1.1%
- Industrials0.6%
Geography
- United States85.94%
- Canada9.74%
- United Kingdom3.00%
- Ireland0.44%
- Netherlands0.28%
- Bermuda0.27%
- Switzerland0.17%
- Greece0.15%
VRP Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
VRP$10,215
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | VRP |
|---|---|
| Year to date | +1.0% |
| 1 month | −0.9% |
| 3 months | −1.4% |
| 1 year | +2.1% |
| 3 years | +8.9% |
| 5 years | +3.9% |
| 10 years | +4.7% |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | VRP |
|---|---|---|
| 2026 YTD | +1.0% | |
| 2025 | +7.3% | |
| 2024 | +11.1% | |
| 2023 | +10.3% | |
| 2022 | −9.0% | |
| 2021 | +4.2% | |
| 2020 | +5.1% |
VRP in the news
VRP Dividends
- 6.22%
- $1.47
- $0.11 per share
- Monthly
Distribution history
VRP Risk
- 4.5%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.81
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −13.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.47
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
VRP Cost
0.50%
VRP0.50%
- The middle half of Preferred Securities funds
- Median 0.50%
14 of the 31 Preferred Securities funds charge less.
Other funds in Preferred Securities
- BEVPFEaton Vance Preferred Securities and Income ETFExpense ratio 0.20%1 year return —
- BPSKState Street SPDR ICE Preferred Securities ETFExpense ratio 0.45%1 year return −8.4%
- BPFXFVanEck Preferred Securities ex Financials ETFExpense ratio 0.40%1 year return +5.0%
- BPGXInvesco Preferred ETFExpense ratio 0.50%1 year return −7.9%
- BJHPIJohn Hancock Investments - Preferred Income ETFExpense ratio 0.54%1 year return −0.4%