iShares S&P/TSX Preferred ETF

CPD-T

Analysis and Opinions about CPD-T

Signal
Opinion
Expert
BUY
BUY
November 4, 2019

Adding preferred shares to bonds and GICS to a portfolio? HPR or ZPR? Great idea and either of those ETFs is fine. CPD is a basket of reset-preferreds is another idea or buy the individual preferreds like BCE or the banks. Preferreds are good to buy now because rates are so low. Preferreds are now yielding 120-200% of what 1o-year bonds are paying.

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Adding preferred shares to bonds and GICS to a portfolio? HPR or ZPR? Great idea and either of those ETFs is fine. CPD is a basket of reset-preferreds is another idea or buy the individual preferreds like BCE or the banks. Preferreds are good to buy now because rates are so low. Preferreds are now yielding 120-200% of what 1o-year bonds are paying.

DON'T BUY
DON'T BUY
August 27, 2019
A mix of perpetual issues and resets. Makes up 10% of his portfolio. It's a Blackrock ETF loaded with rate resets and that's why it's under pressure. He's not ready to sell it--it pays a nice yield and he owns it as a hedge. But it's had a hard time lately. 10% is too much, unless interest rates come back which he doesn't expect.
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A mix of perpetual issues and resets. Makes up 10% of his portfolio. It's a Blackrock ETF loaded with rate resets and that's why it's under pressure. He's not ready to sell it--it pays a nice yield and he owns it as a hedge. But it's had a hard time lately. 10% is too much, unless interest rates come back which he doesn't expect.
BUY
BUY
August 21, 2019
ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
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ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
DON'T BUY
DON'T BUY
June 5, 2019
Dividend stocks have been very volatile in Canada. Predicting where interest rates is very difficult. Every single ETF provider has one of these preferred ETFs. He wonders if there is too many retail investors chasing a vary small sector of the market. He prefers a BCE or a similar stock.
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Dividend stocks have been very volatile in Canada. Predicting where interest rates is very difficult. Every single ETF provider has one of these preferred ETFs. He wonders if there is too many retail investors chasing a vary small sector of the market. He prefers a BCE or a similar stock.
DON'T BUY
DON'T BUY
February 14, 2019
How much weight would you give to a preferred share ETF within a FI portfolio? He doesn't like preferreds. You get a return of a bond abut the risk of a stock. He prefers covered calls for income.
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How much weight would you give to a preferred share ETF within a FI portfolio? He doesn't like preferreds. You get a return of a bond abut the risk of a stock. He prefers covered calls for income.
John Hood

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Price
$12.390
Owned
Unknown
COMMENT
COMMENT
December 18, 2017

Changing from GICs and a savings account? He would suggest you buy some preferred shares. Preferred shares are undervalued relative to interest rates. You can buy this ETF. 70% of the portfolio is in floating rate preferreds, which means if interest rates rise, the value of the preferreds will hold their own because the interest they collect will rise. It pays a monthly income and has a 4.8% yield, significantly better than you would get on a bond portfolio.

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Changing from GICs and a savings account? He would suggest you buy some preferred shares. Preferred shares are undervalued relative to interest rates. You can buy this ETF. 70% of the portfolio is in floating rate preferreds, which means if interest rates rise, the value of the preferreds will hold their own because the interest they collect will rise. It pays a monthly income and has a 4.8% yield, significantly better than you would get on a bond portfolio.

SELL STRENGTH
SELL STRENGTH
July 10, 2017

A basket of preferred stocks, a lot of them being resets. He has been a net seller of the BMO version late last week. He would continue to be a seller into strength. You could buy into pullbacks. It is unlikely we will break out of the range.

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A basket of preferred stocks, a lot of them being resets. He has been a net seller of the BMO version late last week. He would continue to be a seller into strength. You could buy into pullbacks. It is unlikely we will break out of the range.

COMMENT
COMMENT
November 28, 2016

If interest rates are going to go up (he doesn’t think that is going to happen in a big way), then reset preferreds make a lot of sense. If interest rates are going to go down, reset preferreds don’t. The BMO S&P/TSX Laddered Preferred (ZPR-T) has more reset preferreds in it, while this one is a combination of traditional type preferreds and the resets. Either one is fine right now, but he has been a net seller of these in recent weeks. If this one dips back to about $12.50, he is going to start buying again. He would be a seller above $13.

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If interest rates are going to go up (he doesn’t think that is going to happen in a big way), then reset preferreds make a lot of sense. If interest rates are going to go down, reset preferreds don’t. The BMO S&P/TSX Laddered Preferred (ZPR-T) has more reset preferreds in it, while this one is a combination of traditional type preferreds and the resets. Either one is fine right now, but he has been a net seller of these in recent weeks. If this one dips back to about $12.50, he is going to start buying again. He would be a seller above $13.

BUY WEAKNESS
BUY WEAKNESS
September 12, 2016

It is a big position of his in his global dividend fund. He has been a net seller in the last couple of months. He would be nibbling away here.

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It is a big position of his in his global dividend fund. He has been a net seller in the last couple of months. He would be nibbling away here.

COMMENT
COMMENT
May 19, 2016

BMO S&P/TSX Laddered Preferred (ZPR-T) or iShares S&P/TSX preferred (CPD-T)? The only difference between these 2 is that ZPR probably has a little bit more in the rate reset preferred shares, which are the shares that will do well when interest rates start to move higher. The both are very similar though. This one gives you about a 5% dividend yield, and you are basically investing in preferred shares. There is going to be some volatility in the preferred share market.

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BMO S&P/TSX Laddered Preferred (ZPR-T) or iShares S&P/TSX preferred (CPD-T)? The only difference between these 2 is that ZPR probably has a little bit more in the rate reset preferred shares, which are the shares that will do well when interest rates start to move higher. The both are very similar though. This one gives you about a 5% dividend yield, and you are basically investing in preferred shares. There is going to be some volatility in the preferred share market.

COMMENT
COMMENT
February 16, 2016

This has a few more perpetuals in it. It depends on what your objective is. If looking for a trading vehicle or that the preferreds are going to come back, you could be waiting an awfully long time. If looking for some yields that are pretty attractive, then it could be fine.

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This has a few more perpetuals in it. It depends on what your objective is. If looking for a trading vehicle or that the preferreds are going to come back, you could be waiting an awfully long time. If looking for some yields that are pretty attractive, then it could be fine.

John Hood

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Price
$11.200
Owned
Unknown
COMMENT
COMMENT
December 10, 2015

If you think interest rates in Canada are going to stay where they are or rise ever so slightly, then this is probably near the low because he believes that is what has been priced into it. He would prefer Premium Income Corporation (PIC.PR.D-T), which is a 6% yield, $15 per share unit. This is like a deep in the money covered call. If interest rates rise, that will be positive for the banks, which means there is very little downside in this product.

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If you think interest rates in Canada are going to stay where they are or rise ever so slightly, then this is probably near the low because he believes that is what has been priced into it. He would prefer Premium Income Corporation (PIC.PR.D-T), which is a 6% yield, $15 per share unit. This is like a deep in the money covered call. If interest rates rise, that will be positive for the banks, which means there is very little downside in this product.

DON'T BUY
DON'T BUY
October 26, 2015

Preferred Share ETF. The reset preferred market is now about 15% undervalued fundamentally so they should be trading up. This ETF, however, does own some perpetual preferreds which would react more negatively if interest rates rise. ZPR-T is his preference because it focuses on resets.

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Preferred Share ETF. The reset preferred market is now about 15% undervalued fundamentally so they should be trading up. This ETF, however, does own some perpetual preferreds which would react more negatively if interest rates rise. ZPR-T is his preference because it focuses on resets.

DON'T BUY
DON'T BUY
March 26, 2015

Not a huge fan of index, passive investing. This especially does not make sense in the preferred share market. You need active management to do it properly.

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Not a huge fan of index, passive investing. This especially does not make sense in the preferred share market. You need active management to do it properly.

HOLD
HOLD
February 24, 2014

The preferred share market is not liquid. You should buy a small basket of preferreds with the assistance of an advisor. You can’t use an ETF in an illiquid market.

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The preferred share market is not liquid. You should buy a small basket of preferreds with the assistance of an advisor. You can’t use an ETF in an illiquid market.

Joey Mack

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Price
$16.020
Owned
Unknown
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