TSE:HPR

8.40
0.04 (0.47%) 1d
0

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Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Based on the reviews from different experts, the consensus seems to be that the Horizons Active Preferred Share ETF (HPR-T) is not a favorable investment for the average investor due to its risky nature and limited potential for upside. Income-oriented investors are advised to explore better options, such as the Canadian Dividend Index. Overall, the stock is perceived as carrying more downside risk than potential reward.

Consensus
Negative
Valuation
Overvalued
Similar
BCE-T, BCE
DON'T BUY

Preferred share market is risky - not a good place for average investor.
Not much upside with lots of downside risk.
Income oriented investors have better options.
Canadian Dividend Index a better product. 

E.T.F.'s
BUY ON WEAKNESS

Likes active approach to preferred asset class.
Very sensitive to interest rates.
Would wait to buy when prices fall.
Very volatile.

E.T.F.'s
DON'T BUY

For recent years, he's been off and on preferred shares. Preferreds are volatile. When interest rates plunged 2-3 years ago, this asset class got reamed. HPR pays a big dividend, but also offers huge volatility. Also, it lacks the growth of stocks but carries the volatility. He had a terrible experience with this. Look at ZUP-T, which covers US preferreds which are largely fixed-rate, a key difference to Canadian preferreds. Also, US preferreds are less volatile than Canadians.

E.T.F.'s
WATCH
Pretty darn good, actively managed ETF. This is the way to go rather than picking your own preferreds. But you can see it's struggled. If we're in a Fed loosening cycle, with rates dropping, you'd want to own perpetuals, not rate resets. As rates fall, your coupon will fall as well. But if you think rates will ratchet up, then it's good.
E.T.F.'s
DON'T BUY
Getting a decent yield. Need to keep in mind rate reset preferred shares versus perpetual rates. Not a fan of preferred since you get the yield of a bond with the risk of a stock. Would rather have covered calls and Canadian banks.
E.T.F.'s
SELL ON STRENGTH
HPR outperforms the larger index. It's interest-rate sensitive. Pays a good yield. However, if the Bank of Canada cuts rates, this will decline 10-15%. This is a tactical buy, so sell on a rally of 5-10%. Not a long-term buy.
E.T.F.'s
BUY
Preferreds are Jekyll and Hyde: when markets are calm, they act normally and give you a coupon-like return, but when markets act crazy, they act like an equity. All preferred share indices have declined 10-15% because of the rate reset and credit. When there's equity duress and rate resets, these ETFs go down. Instead, buy an actively managed ETF; it's worth the extra fee.
E.T.F.'s
HOLD
He likes this and ZPR-T, but in general is not a big fan of preferred shares as he feels they have the yield of bonds and the risk of stocks. He holds it as a partial position, but does not view it as a good place to park cash. The yield on HPR-T is over 4%.
E.T.F.'s
BUY

ZPR-T vs HPR-T? Preferred shares in Canada are subject to resets, so they’re a great thing when interest rates rise. But when rates go down, they get creamed. It’s unlikely that rates will go down anytime soon. ZPR-T is laddered, and very short term and floating rate. Not a bad strategy. A better strategy would be HPR-T, which is actively managed by Fierra a fantastic manager in the fixed income space. The price on HPR-T is kinda in the same category as ZPR-T but you get the advantage of Fierra without paying a lot. Prefers HPR-T to ZPR-T.

E.T.F.'s
HOLD

Preferred shares are a great investment due to the favorable tax treatment. With active management you are getting a great benefit. They will be holding a balance of fixed versus floating holdings. A casual investor can get caught in the various different covenants associated with this class. He thinks this is an excellent way to add preferred exposure to your portfolio.

E.T.F.'s
COMMENT

Preferred share market in Canada has become complicated with all these resets. HPR is actively managed. Would work pretty well in rising rate environment.

E.T.F.'s
BUY

ZPR-T vs. HPR-T. HPR-T is actively managed whereas the other is a laddered, index ETF. The HPR-T is probably a better hold even though the fees are higher.

E.T.F.'s
HOLD

Active preferred share ETF. ZPR-T is almost entirely resets, but HR-T is 70% resets and 30% perpetuals. If there is another down stroke in interest rates, this one could retain its value more. But ZPR-T could retain its value better during rate increases. Do a little of each. He is not a big fan. If you need the income then stay with it.

E.T.F.'s
COMMENT

He often gets asked about preferreds, because it is a very popular asset class for retail investors and has a very nice yield. Lately it has been extremely volatile. A very small market, anywhere between $40 billion and $60 billion. Because it is so small and the issues are so complicated, this is one of the few areas where active management may be able to help the investor. It is actively managed, not an index product, and has handily outperformed the S&P/TSX Preferred index. Buying an ETF for this asset class makes a lot more sense than using an individual issue, because you are diversified and you have the active management as well. Dividend yield of 4.2%.

E.T.F.'s
PAST TOP PICK

(A Top Pick Sept 23/15. Up 8.53%.) He likes preferred shares in general as an asset class. What he likes about this one is that unlike the US side, this is a pretty plain-vanilla fixed rate preferred perpetuals. He likes that it is an actively managed ETF.

E.T.F.'s
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Horizons Active Preferred Share ETF(HPR-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for Horizons Active Preferred Share ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Horizons Active Preferred Share ETF(HPR-T) Frequently Asked Questions

What is Horizons Active Preferred Share ETF stock symbol?

Horizons Active Preferred Share ETF is a Canadian stock, trading under the symbol HPR-T on the Toronto Stock Exchange (HPR-CT). It is usually referred to as TSX:HPR or HPR-T

Is Horizons Active Preferred Share ETF a buy or a sell?

In the last year, 1 stock analyst published opinions about HPR-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Horizons Active Preferred Share ETF.

Is Horizons Active Preferred Share ETF a good investment or a top pick?

Horizons Active Preferred Share ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for Horizons Active Preferred Share ETF.

Why is Horizons Active Preferred Share ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Horizons Active Preferred Share ETF worth watching?

1 stock analyst on Stockchase covered Horizons Active Preferred Share ETF In the last year. It is a trending stock that is worth watching.

What is Horizons Active Preferred Share ETF stock price?

On 2024-04-22, Horizons Active Preferred Share ETF (HPR-T) stock closed at a price of $8.4.