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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Equal Weight REITs Index ETF (ZRE)
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iShares S&P/TSX Capped REIT Index ETF (XRE)
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BMO Laddered Preferred Share Index ETF (ZPR.U)
Q: Income account needs some diversification. Was looking at REITs and pref's. In today's environment which would be your favored ETF's for income and some possible growth? Thanks Ron
5i Research Answer:
REIT's might have a bit of a difficult time growing in the current environment with higher rates and trends with work-from-home. We would prefer to take more of a precise approach within REITs and focus on certain niches (like industrial and residential) opposed to a more broad approach. We do think preferreds could be interesting with 75% of holdings in CPD being rate resets. If rates stay higher, it could naturally see its overall yield grow from here over time.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD, ZRE.