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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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BMO Laddered Preferred Share Index ETF (ZPR)
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iShares 20+ Year Treasury Bond ETF (TLT)
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Dynamic Active Preferred Shares ETF (DXP)
Q: Which do you prefer to invest today: TLT or preferred stock ETFs. For preferred stock ETFs, could you suggest a few? Please explain the reason. Thank you.
5i Research Answer:
Some preferred ETFs we can suggest are: CPD, ZPR, DXP. However, if rates are to fall, we think TLT, with its long term duration portfolio, will have higher potential leverage to the upside. This makes it riskier if rates go up instead of down, but it would still be our choice here. Note the preferred shares do come with the dividend tax credit, so taxes should be considered here as well.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD.