Q: Good morning 5i;
I do not often see questions/comments regarding preferred shares; of which I confess I understand very little. Do you have a few good resource recommendations where one could educate themselves on these investment vehicles?
I would also be interested to know if there are any (understanding there's thousands of possibilities) preferred shares or preferred share ETF's you would suggest could be examined more closely for investment.
Thanks very much!
I do not often see questions/comments regarding preferred shares; of which I confess I understand very little. Do you have a few good resource recommendations where one could educate themselves on these investment vehicles?
I would also be interested to know if there are any (understanding there's thousands of possibilities) preferred shares or preferred share ETF's you would suggest could be examined more closely for investment.
Thanks very much!
5i Research Answer:
We feel this explainer by Investopedia is a good starting point.
We like the iShares S&P/TSX Canadian Preferred Share ETF (CPD). It has $1.0B in AUM, 175 holdings, a distribution yield of 5.8%, and an MER of 0.5%. In general, preferred shares can perform better as rates peak/decline.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD.