Q: Goood Morning.
I beleieve peferred shares have been sliding into an interesting buying oportunity. I would like to find and etf or mutual fund that is mostly in the rate reset category. I know of CPD.CA but I believe this one is mostly regular preferreds. Any ideas?
Thank you.
I beleieve peferred shares have been sliding into an interesting buying oportunity. I would like to find and etf or mutual fund that is mostly in the rate reset category. I know of CPD.CA but I believe this one is mostly regular preferreds. Any ideas?
Thank you.
5i Research Answer:
It is a tough request; the only ETF that specifically invests in resets is DCP, but assets are only $28M currently. Fees are 0.46% and one year return -10.75%. It has been around for five years so we would have expected to to grow more than it has so far. RPF is not specifically targetting resets, but is an active fund so not tied to a specific index, so it has at least the ability to do so. It has $524M in assets, fees 0.54% and 1 year -7.08%, 3-year +2.36%.