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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.70)
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iShares Core Canadian Universe Bond Index ETF (XBB $28.21)
Q: Thoughts on CPD for the coming year? How much more volatile is than XBB. Trying to understand how it fits into my portfolio between equities and bonds,
5i Research Answer:
Preferreds can do better with lower rates, at times (re-set preferreds not always). Performance has dramatically improved: CPD 5-year is 7.59%, vs XBB -0.20%. But as preferreds are 'quasi equity' they can be more volatile at times, certainly. If bonds are already owned elsewhere, we would be fine adding CPD.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD.