The European debt crisis that has affected the creditworthiness of French banks such as Societe Generale has added to the ETF pressure, Citywire reports. The ban on short-selling in France, Spain, Belgium and Italy has raised concerns about providers lending out shares to generate returns. Some of the preferred stock ETFs, including the iShares S&P US Preferred Stock Index fund, have heavy allocations to the European banks. Products such as Euro Stoxx 500, have exposure in Societe Generale, Credit Agricole and BNP Paribas.

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