San Francisco based iShares, the ETF giant, has detailed plans for an international preferred stock ETF that seeks to replicate the performance of the S&P International Preferred Stock Index. That index is made up of preferred stocks from non-U.S. developed market issuers with a heavy tilt toward Canadian bank stocks (73%). Also represented in the index are companies from Japan, New Zealand, and the UK stock markets.

Preferred stock is different from common stock in several ways. While it entitles the holder to ownership interest in a company, it doesn't come with voting rights like common stock. It is also issued with a fixed par value and pays dividends based on a percentage of that par value, much like a bond. Also unlike common stocks, preferred shares often have a liquidation value that equals the original purchase price.