Q: ZPR is around 75% fixed reset and floating. I would have expected the unit value to rise this year as 5 year rates have moved from around 1.8% to 2.3%. Instead, the unit value has dropped around 7% ytd. Has the spread on preferreds to bonds widened or is there something else going on? Thanks for any insight.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
Q: Can you recommend a preferred share ETF that has rate reset preferred shares. And what percentage of a portfolio should it be?
Q: I own some individual rate reset preference shares which pay dividends. I also own some ZPR/HPR shares which pay interest. Why are the payments classified as interest when the income comes from underlying pref share dividends? I can’t seem to find an explanation on any of the websites. Can you clear this up for me. Thanks as always.
Q: If I hold ZPR in my portfolio, should I consider this as my Financial and utilities allocation? Most of the preferred shares in this fund are from banks and utilities. Or should this be considered fixed income?
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Horizons Active Preferred Share ETF (HPR)
Q: I read in a previous post that you favored HPR and ZPR over CPD (Sept 18, 2017) because of the rate reset. I am currently adding to my fixed income and would it be a good strategy to add 50 / 50 ZPR and CPD for the preferred portion ?
(I also own a larger position in CBO).
Also, do you recommend adding a convertible bond etf (CVD or other) for diversification purposes ? Thank you for your comments.
(I also own a larger position in CBO).
Also, do you recommend adding a convertible bond etf (CVD or other) for diversification purposes ? Thank you for your comments.
- Manulife Financial Corporation (MFC)
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- CI U.S. & Canada Lifeco Covered Call ETF (FLI)
Q: Over the last little while I purchased the above securities because of a rising rate environment. All have performed as expected except ECN.pr.A. Is there any particular reason for this. Would it be wise to average down . I’m still thinking that with rising interest rates their will be more demand for their services. What about the margin will this increase, decrease or stay the same ?
Q: Any comments about the recent ENB rate reset preferred issue....it seems to have a very favourable floor reset rate although the spread off 5 year Canada's does seem a little rich.
In addition, any new comments ZPR
Thanks
In addition, any new comments ZPR
Thanks
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Invesco Canadian Preferred Share Index ETF (PPS)
Q: Your opinions on these ETFs, please.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Horizons Active Floating Rate Preferred Share ETF (HFP)
- Mawer Global Small Cap Fund Series A (MAW150)
- Mawer Global Equity Fund Series A (MAW120)
- Mawer International Equity Fund Series A (MAW102)
- Mawer Balanced Fund Series A (MAW104)
Q: Hi 5i, I am looking for a relatively safe environment in view of future interest rate increases. Please rate the above list, also can you tell me if there are any withdrawing charges in the Mawers. Perhaps suggesting other ones you prefer. I am 85 year young and like to have safety with some income. Like the new changes, many thanks for your help. J.A.P, Burlington
Q: Hello 5i team,
In calculating percentages of holdings and sectors: concerning complete portfolio vs, equities and fixed: are ZPR and and XTR considered equities or fixed?
Thank you
Stanley
In calculating percentages of holdings and sectors: concerning complete portfolio vs, equities and fixed: are ZPR and and XTR considered equities or fixed?
Thank you
Stanley
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Horizons Active Preferred Share ETF (HPR)
Q: I am 70 years old, been retired for 14 years, and can't risk losing capital. Thus my portfolio is currently 100% in fixed income.... 65% in laddered 1-5 year GIC's, 10% in bond ETF's (CBO, CLF, XBB), 5% in preferred shares, and 20% in cash. In the preferred share category, I currently hold CPD, HPR, and ZPR equally. Given a steadily increasing interest rate environment, would you recommend selling CPD and adding to HPR and ZPR, due to their leanings towards rate re-sets? Is a 5% total weighting for preferreds appropriate for this fixed income portfolio? What do you recommend for the remaining cash, given my mandate for "safe" investments? Should I stick with additional GIC's or expand the bond allocation? Thanks!
- BMO Laddered Preferred Share Index ETF (ZPR)
- Horizons Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO)
- iShares 1-5 Year Laddered Government Bond Index ETF (CLF)
- iShares Convertible Bond Index ETF (CVD)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Greetings Peter and 5i Team,
I have $100,000 to invest in the fixed income part of my portfolio. All investments will be inside a RRSP. As a retiree, I'm hoping for capital preservation, (safety) with a reasonable return on my investment. Currently, the only exposure I have to fixed income is ZPR. I'm considering adding the investments in your Income Fund (CVD, XHY), as well as HFR to my portfolio.
-Do you believe these investments will provide solid fixed income exposure?
-Do you see any way I can improve my exposure to the sector? i.e. is there any need for exposure to foreign bonds?
- What percentage of the $100,000 would you allocate to each ETF?
As always, thanks in advance for your appreciated support.
I have $100,000 to invest in the fixed income part of my portfolio. All investments will be inside a RRSP. As a retiree, I'm hoping for capital preservation, (safety) with a reasonable return on my investment. Currently, the only exposure I have to fixed income is ZPR. I'm considering adding the investments in your Income Fund (CVD, XHY), as well as HFR to my portfolio.
-Do you believe these investments will provide solid fixed income exposure?
-Do you see any way I can improve my exposure to the sector? i.e. is there any need for exposure to foreign bonds?
- What percentage of the $100,000 would you allocate to each ETF?
As always, thanks in advance for your appreciated support.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Invesco Preferred ETF (PGX)
- Invesco Variable Rate Preferred ETF (VRP)
Q: Hello Peter, Like most of us, are concern about the effect of the coming rate increases. How safe will the above preferred shares be, would you consider them as good choices for income and safety? Also, can you suggest equivalents in the Canadian market? Many thanks for your valued advise, J.A. P. Burlington
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged) (XPF)
- Invesco Canadian Preferred Share Index ETF (PPS)
- iShares U.S. Preferred Stock (PFF)
Q: Hi Peter and Team,
Could you please give me your thoughts on preferred shares in general given the current interest rate environment and the pending rate hike by BOC in about a week's time. Please also provide some names of ETFs of preferred stocks in both Canadian and US denominations.
Cheers,
Harry
Could you please give me your thoughts on preferred shares in general given the current interest rate environment and the pending rate hike by BOC in about a week's time. Please also provide some names of ETFs of preferred stocks in both Canadian and US denominations.
Cheers,
Harry
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
Q: What are the pros and cons of these two ETFs? Looking forward, which of the 2 do you believe has the best price appreciation potential? Are there better ways to get exposure to preferreds? Please explain. Thanks so much for the guidance.
Q: Hi 5i Team: In an anticipated rising rate environment I am leaning towards adding more ZPR in my preferred share segment of my fixed income portfolio. Am I correct in thinking ZPR is (no pun intended) preferable over HPR at this time? Or should I take HPR as a little diversification as I only hold rate resets in my preferred share portfolio at the present time.
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
Q: Hi 5i team, which of the above preferred ETF's would you recommend right now primarily for income and some price appreciation. Which one has the most to gain from increasing interest rates.
Thanks
Thanks
- Bank of Nova Scotia (The) (BNS)
- BCE Inc. (BCE)
- Enbridge Income Fund Holdings Inc. (ENF)
- BMO Laddered Preferred Share Index ETF (ZPR)
Q: A senior in his 80s has recently inherited 200,000. We have put 100,00 into laddered GICs. We would like to divide the remaining 100,000 into 4 income investments. We would like your opinion on the following stocks. Income and safety are paramount. Please list them in order of preference and feel free to add any we have not thought of. BCE,BNS,ZPR,ENF,AQN. Thanking you in advance for your opinion
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Laddered Preferred Share Index ETF (ZPR)
- Horizons Active Preferred Share ETF (HPR)
Q: I wish all 5i staff and they families Season's Greetings' I hope 2017 sees our portfolios grow ever healthier.
I want to gradually add some preferred shares to my portfolio, partly in lieu of some fixed income. In looking at potential candidates, I am attracted to the above three ETFs, particularly ZPR with its laddered feature. Do you have any thoughts? Are all distributions of such ETFs taxed as dividends? Thanks, Bill
I want to gradually add some preferred shares to my portfolio, partly in lieu of some fixed income. In looking at potential candidates, I am attracted to the above three ETFs, particularly ZPR with its laddered feature. Do you have any thoughts? Are all distributions of such ETFs taxed as dividends? Thanks, Bill
Q: I wanted a quick opinion on the nature of these two ETF's, does ZPR hedge ZRE with interest rates? What I mean is that if interest rates rise ZPR should rise and ZRE should decline and vice versa? Looking long term the interest rate effect will balance out with growth of the companies within ZRE and ZPR should be higher with higher payouts as the preferreds reset?