Yields for most popular shares are at their highest stage in additional than a decade, and traders can use trade traded funds to seize that revenue in addition to any potential upside, based on Financial institution of America. Most well-liked shares are a sort of safety that’s above frequent inventory in an organization’s capital construction and infrequently pay increased dividend yields. Jared Woodard, funding and ETF strategist at Financial institution of America, mentioned in a be aware to shoppers on Tuesday that traders trying to find yield could have a tough time discovering a greater deal that preferreds. “Most well-liked inventory yields are hovering round 7% for the primary time since 2010 … Present yields are within the 82nd percentile, providing good entry factors for traders trying to harvest high quality yield. Most well-liked ETFs supply essentially the most enticing yield relative to bond ETFs in our protection,” the be aware mentioned. Financial institution of America gave buy-equivalent rankings to a few funds on this class: the iShares Most well-liked and Revenue Securities ETF (PFF) , the International X U.S. Most well-liked ETF (PFFD) and the VanEck Most well-liked ex-Financials ETF (PFXF) . These funds have a median yield of 6.7%, based on Financial institution of America. Of the three, International X’s PFFD has the bottom expense ratio at 0.23%, and VanEck’s PFXF has carried out one of the best this yr with a complete return of about 6.7% based on FactSet. That’s partly as a result of the Van Eck fund excludes preferreds from monetary corporations, which got here beneath strain after a string of regional financial institution failures earlier this yr. Nevertheless, historical past reveals that these securities can rebound, based on Financial institution of America. “In the course of the 2008/9 nice monetary disaster (GFC), excessive publicity to financials weighed closely on most popular inventory returns, because it has performed immediately. After 2009, preferreds outperformed bonds by 8%/yr … and matched the risk-adjusted returns of equities … We anticipate upside potential analogous to historical past,” Woodard wrote. — CNBC’s Michael Bloom contributed to this report.