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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.43)
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BMO Laddered Preferred Share Index ETF (ZPR $11.91)
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RBC Canadian Preferred Share ETF (RPF $23.64)
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TD Active Preferred Share ETF (TPRF $12.20)
Q: I have a base of preferred shares ETFs to help counterbalance the tech stocks and their volatility, and these ETFs generally move very little in a day. Wednesday was an exception, with TPRF and CPD in particular, down more than 1%, and the others down quite a bit, as well. This despite the TSX and all other indices being up. Would you care to speculate what made all the preferred shares ETFs drop in tandem on Wednesday?
5i Research Answer:
CPD did go ex-dividend on Nov 19. The decline in preferred shares typically relates to rate movements, and that appears to be the case here. This week investors more or less collectively decided that interest rates would not decline in December, and this may have caused some selling. But generally speaking, we do not find it overly constructive to look at one day's trading: there could be dozens of reasons here, none of which can be proven, especially on ETFs which themselves own dozens of securities.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD.