Horizons Active Preferred Share ETF

HPR-T

Analysis and Opinions about HPR-T

Signal
Opinion
Expert
WATCH
WATCH
August 1, 2019
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.
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.
Mike Philbrick
President, ReSolve Asset Management
Price
$8.040
Owned
Unknown
DON'T BUY
DON'T BUY
July 19, 2019
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.
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.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$8.020
Owned
No
SELL STRENGTH
SELL STRENGTH
February 25, 2019
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.
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.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$8.370
Owned
Yes
BUY
BUY
January 29, 2019
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.
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.
Mike Philbrick
President, ReSolve Asset Management
Price
$8.305
Owned
Unknown
HOLD
HOLD
January 2, 2019
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%.
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%.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$8.310
Owned
Unknown
BUY
BUY
September 21, 2018

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.

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.

Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$9.650
Owned
Unknown
HOLD
HOLD
August 31, 2018

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.

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.

Mike Philbrick
President, ReSolve Asset Management
Price
$9.700
Owned
No
COMMENT
COMMENT
July 13, 2018

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

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

Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$9.650
Owned
Yes
BUY
BUY
March 5, 2018

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.

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.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$9.650
Owned
Unknown
HOLD
HOLD
May 11, 2017

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.

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.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$9.280
Owned
Unknown
COMMENT
COMMENT
January 13, 2017

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%.

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%.

Daniel Straus
Head of ETF Research & Strategy, National Bank Financial
Price
$8.920
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
December 16, 2016

(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.

(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.

Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$8.610
Owned
Yes
COMMENT
COMMENT
November 30, 2016

He is finding his clients have a real need for income, and you can’t get that in the bond market. The only way you could is to buy Long Bonds. However, these behave inversely to interest rates, and the 70-basis point rise in US interest rates has really hurt the Long Bond market. Yet it hasn’t impacted the preferred share market. This is a great source of income for yield oriented investors.

He is finding his clients have a real need for income, and you can’t get that in the bond market. The only way you could is to buy Long Bonds. However, these behave inversely to interest rates, and the 70-basis point rise in US interest rates has really hurt the Long Bond market. Yet it hasn’t impacted the preferred share market. This is a great source of income for yield oriented investors.

Lyle Stein
Sr. Portfolio & Managing Director, Vestcap Investment Management
Price
$8.435
Owned
Unknown
COMMENT
COMMENT
May 26, 2016

Preferreds are a very interesting market. It is not very large in Canada, so is a bit illiquid and small. In a market like that, a little element of active management can be quite helpful. This one has managed to outperform the index steadily and incrementally, which is a rare thing to see.

Preferreds are a very interesting market. It is not very large in Canada, so is a bit illiquid and small. In a market like that, a little element of active management can be quite helpful. This one has managed to outperform the index steadily and incrementally, which is a rare thing to see.

Daniel Straus
Head of ETF Research & Strategy, National Bank Financial
Price
$8.110
Owned
Unknown
COMMENT
COMMENT
October 15, 2015

The pain in the preferred share market was mostly the result of the huge number of Reset Preferreds that came onto the market within the last 5 years, so a lot of these preferreds did not reset their dividend for 5 years, and a lot of them did it this year because it was their 5 year anniversary. When they reset their dividends, they were cut dramatically, because they were based on some value above either a 5-year Government of Canada bond or treasury bill if it was a floating rate, or a 5-year Government bond if it was a reset. In both cases, they came down because interest rates declined. However, preferred shares that have fixed rates, that has stayed the same for a long period of time and are investment quality, they have not done that bad. This one is yielding 5% because they have a collection of quality preferreds and different terms giving you instant diversification.

The pain in the preferred share market was mostly the result of the huge number of Reset Preferreds that came onto the market within the last 5 years, so a lot of these preferreds did not reset their dividend for 5 years, and a lot of them did it this year because it was their 5 year anniversary. When they reset their dividends, they were cut dramatically, because they were based on some value above either a 5-year Government of Canada bond or treasury bill if it was a floating rate, or a 5-year Government bond if it was a reset. In both cases, they came down because interest rates declined. However, preferred shares that have fixed rates, that has stayed the same for a long period of time and are investment quality, they have not done that bad. This one is yielding 5% because they have a collection of quality preferreds and different terms giving you instant diversification.

Richard Croft
President, R.N. Croft Financial Group Inc.
Price
$7.800
Owned
Unknown
TOP PICK
TOP PICK
September 23, 2015

The Preferred asset class has started to not behave like it normally does. Usually when a instrument like preferred shares, gets clocked like this one did this year, there is a credit problem. But in fact, there isn’t a credit problem. What came up is that preferred shares in Canada were not homogenous because of all the resets. Because this is an illiquid market, everybody just hit the doors.

The Preferred asset class has started to not behave like it normally does. Usually when a instrument like preferred shares, gets clocked like this one did this year, there is a credit problem. But in fact, there isn’t a credit problem. What came up is that preferred shares in Canada were not homogenous because of all the resets. Because this is an illiquid market, everybody just hit the doors.

Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$8.410
Owned
Yes
DON'T BUY
DON'T BUY
August 7, 2015

Doesn’t like preferreds. You are getting bond yields for stock risks, which doesn’t make sense. On this one you had negative resets when the rates went down, so they got clobbered. Yields are pretty good, but he is not a big fan of that asset class.

Doesn’t like preferreds. You are getting bond yields for stock risks, which doesn’t make sense. On this one you had negative resets when the rates went down, so they got clobbered. Yields are pretty good, but he is not a big fan of that asset class.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$8.710
Owned
No
DON'T BUY
DON'T BUY
August 27, 2012

Most of the ETF’s tend to be indexed based and especially in preferred shares it can be a bit dangerous because the index gets updated after-the-fact. A reasonable way to invest but you are better actively managing preferred shares rather than the indexed type.

Most of the ETF’s tend to be indexed based and especially in preferred shares it can be a bit dangerous because the index gets updated after-the-fact. A reasonable way to invest but you are better actively managing preferred shares rather than the indexed type.

Randy LeClair
Chief Investment Officer & Portfolio Manager, Portland Investment Counsel
Price
$10.280
Owned
No
Showing 1 to 18 of 18 entries
  • «
  • 1
  • »