Lost 28% in this. Sell or Hold? Last year the preferred market was down. This should not be a large part of your fixed income portion, and you should take some off the table, and reapportionment into a traditional fixed income security such as government or corporate bonds.
It is a rate reset ETF of preferred shares. As interest rates have fallen to probably the lowest level, the yields are pretty good. He would prefer to sell calls against the banks, collecting the dividend along the way. He is not a fan of preferreds.
We have recovered from a market perspective so it is natural that the ETF moves. Interest does not move as much and he believes the 5 years is anchored. He would not expect a big change in distributions for the time being. You will see some stability and creeping back.
The ETFs are better to go because of diversification. There is a little more upside but not a whole lot more. There will not be increases in interest rates any time soon. Rates shouldn't go much lower either. The rates should remain stable.
Doesn't see a whole lot of upside from here. Has had a good run and has been selling into the run. The next big move from the BoC will be a rate hike than a cut. With 5 year rates still low, the reset market is not a big challenge.
Pays a 4+% dividend. Preferreds are susceptible to changing in interest rates. This is a rate-reset, so even if interest rates rise, ZPR can reset its payout. Generally, he doesn't like preferreds, and would rather buy covered calls which pays a slightly higher return.
Has short duration preferred shares. Also has rate reset features. If you think we will see rising rates, which is a good assumption, then they will ratchet their rates up to keep up with rising interest rates. These are not government bonds, and there is some risk. However, with 4% dividend rates, there is an attraction there. If rates rise, it does participate and offset some inflation.
Stockchase Research Editor: Michael O’Reilly A Canadian preferred share ETF that is laddered up to five years managed by BMO. This includes rate resets that benefit from rising interest rates. It has a low MER of 0.5% and an attractive yield. Preferred shares have generally been under pressure as interest rates have gone up, so this is a good entry point. We recommend setting a stop loss at $8.40, looking to achieve $10.75 – upside potential of 13%.
We reiterate this Canadian preferred share ETF as a TOP PICK. Preferred shares have generally been under pressure as interest rates have gone up, so this is a good entry point. It has a low MER of 0.5% and an attractive yield. We continue to recommend a stop loss at $8.40, looking to achieve $10.75 – upside potential of 19%. Yield 6.0%
We again reiterate this Canadian preferred share ETF as a TOP PICK. Preferred shares have generally been under pressure as interest rates have gone up. As interest rates stall and eventually turn lower to long term averages, this has significant upside potential. It has a low MER of 0.5% and an attractive yield. We continue to recommend a stop at $8.40, looking to achieve $10.75 – upside potential of 19%. Yield 6.0%
(A Top Pick Jul 25/23, Down 5.4%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with ZPR has triggered its stop at $8.40. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 9%, when combined with our previous recommendations.
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Lost 28% in this. Sell or Hold? Last year the preferred market was down. This should not be a large part of your fixed income portion, and you should take some off the table, and reapportionment into a traditional fixed income security such as government or corporate bonds.