BMO S&P/TSX Laddered Preferred

ZPR-T

Analysis and Opinions about ZPR-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
April 8, 2020
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.
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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.
COMMENT
COMMENT
March 25, 2020
Preferred shares? This is indicative of high yield investments that act as equity when the market is under duress. ZPR is an example that is down 35% for the year. The global bailouts amount to $12 trillion and this is driving interest rates down to zero. Rate resets that use these long term rates to set the dividend will cause them to fall in value.
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Preferred shares? This is indicative of high yield investments that act as equity when the market is under duress. ZPR is an example that is down 35% for the year. The global bailouts amount to $12 trillion and this is driving interest rates down to zero. Rate resets that use these long term rates to set the dividend will cause them to fall in value.
COMMENT
COMMENT
May 27, 2019
A lot of the preferreds have moved to reset preferreds. Preferreds are not as defensive as they were historically. They are not as low risk as people traditionally think.
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A lot of the preferreds have moved to reset preferreds. Preferreds are not as defensive as they were historically. They are not as low risk as people traditionally think.
COMMENT
COMMENT
May 9, 2019
Many people are looking for income. This pays a 6% yield. (See his top picks later.)
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Many people are looking for income. This pays a 6% yield. (See his top picks later.)
COMMENT
COMMENT
April 2, 2019
Good ETF. Interest rates going down affects it as many of the underlying are rate resets. He doesn't like preferreds that much in the sense that you get return of a bond with a risk of stocks. He prefers capital growth.
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Good ETF. Interest rates going down affects it as many of the underlying are rate resets. He doesn't like preferreds that much in the sense that you get return of a bond with a risk of stocks. He prefers capital growth.
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%.
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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%.
BUY
BUY
November 19, 2018
ZPR-T vs. ZWC-T vs. ZWU-T. He likes ZWU-T and ZWC-T for the covered calls. ZPR-T is reset preferreds. They reset. There is an expectation that BOC will be less aggressive with interest rates so we are seeing pressure on these. The lower it gets the more he likes it. He feels it will appreciate next year.
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ZPR-T vs. ZWC-T vs. ZWU-T. He likes ZWU-T and ZWC-T for the covered calls. ZPR-T is reset preferreds. They reset. There is an expectation that BOC will be less aggressive with interest rates so we are seeing pressure on these. The lower it gets the more he likes it. He feels it will appreciate next year.
BUY
BUY
September 24, 2018

There used to be perpetual preferreds that did poorly when bonds went up. He does not see a lot of growth here. He has been trading it. He trades a range. He prefers the indexed strategy to going into specific preferreds. HPR-T is an alternative he prefers.

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There used to be perpetual preferreds that did poorly when bonds went up. He does not see a lot of growth here. He has been trading it. He trades a range. He prefers the indexed strategy to going into specific preferreds. HPR-T is an alternative he prefers.

COMMENT
COMMENT
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.

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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.

DON'T BUY
DON'T 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.

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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.

COMMENT
COMMENT
January 23, 2018

Rate resets? Has heard a lot more about preferred shares in the last few months than he has in the last 5 years. Where you have to be very diligent is in reading the fine print. What is the reset? How many more basis points are the giving you over Canada's? What is their benchmark? When does it occur? This is a place that you could put part of your portfolio in, you just have to be extremely selective.

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Rate resets? Has heard a lot more about preferred shares in the last few months than he has in the last 5 years. Where you have to be very diligent is in reading the fine print. What is the reset? How many more basis points are the giving you over Canada's? What is their benchmark? When does it occur? This is a place that you could put part of your portfolio in, you just have to be extremely selective.

HOLD
HOLD
January 19, 2018

Bank of Montréal preferreds are in fact rate resets as opposed to perpetuals, which are by and large from iShares. As rates change, the rates they are paying will change as well. Generally with the preferred, if you are seeing rates going up, they tend to get beaten up a little, but rate resets are a little healthier than that. The yield is good on this and he has no intention of selling his.

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Bank of Montréal preferreds are in fact rate resets as opposed to perpetuals, which are by and large from iShares. As rates change, the rates they are paying will change as well. Generally with the preferred, if you are seeing rates going up, they tend to get beaten up a little, but rate resets are a little healthier than that. The yield is good on this and he has no intention of selling his.

WATCH
WATCH
January 8, 2018

Rate Reset Preferreds. With higher interest rates you will get high rates as they reset. He will step in after the next correction.

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Rate Reset Preferreds. With higher interest rates you will get high rates as they reset. He will step in after the next correction.

BUY WEAKNESS
BUY WEAKNESS
October 16, 2017

Laddered preferreds. They do well in rising interest rate environments. Fundamentally it is not cheap here. He got a lot a year ago. He does not like the relative value here. He would buy into weakness on a pull pack. That could happen in December.

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Laddered preferreds. They do well in rising interest rate environments. Fundamentally it is not cheap here. He got a lot a year ago. He does not like the relative value here. He would buy into weakness on a pull pack. That could happen in December.

COMMENT
COMMENT
May 4, 2017

How will rising interest rates affect this, up or down? If you believe preferred shares are a little undervalued compared to bonds, higher interest rates are going to have a negative impact. Doesn’t think it will be as dramatic as the impact you would get if holding a bond portfolio. This is not a bad way to hedge your bets on a higher interest rate environment, because as rates go up, they will reset the preferreds at a higher rate to keep the price steady.

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How will rising interest rates affect this, up or down? If you believe preferred shares are a little undervalued compared to bonds, higher interest rates are going to have a negative impact. Doesn’t think it will be as dramatic as the impact you would get if holding a bond portfolio. This is not a bad way to hedge your bets on a higher interest rate environment, because as rates go up, they will reset the preferreds at a higher rate to keep the price steady.

COMMENT
COMMENT
April 4, 2017

How will rising interest rates affect this? This is a “rules based” ETF and is made up of 100% fixed reset preferred shares. In theory, in a rise in rates, this would perform well.

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How will rising interest rates affect this? This is a “rules based” ETF and is made up of 100% fixed reset preferred shares. In theory, in a rise in rates, this would perform well.

COMMENT
COMMENT
March 13, 2017

Will the rise in value of this ETF continue? The TD Bank and Bank of Montréal launched some structured products into the market that were linked to the payouts of the preferreds, and they were wildly successful. The demand for these preferreds went through the roof. He doesn’t think this is sustainable and he sold into the rally. He doesn’t like the value up here and is reducing his exposure.

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Will the rise in value of this ETF continue? The TD Bank and Bank of Montréal launched some structured products into the market that were linked to the payouts of the preferreds, and they were wildly successful. The demand for these preferreds went through the roof. He doesn’t think this is sustainable and he sold into the rally. He doesn’t like the value up here and is reducing his exposure.

PARTIAL SELL
PARTIAL SELL
February 27, 2017

This is expensive now. He has been selling into the strength since December. If it gets back to those levels he would buy back in.

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This is expensive now. He has been selling into the strength since December. If it gets back to those levels he would buy back in.

PAST TOP PICK
PAST TOP PICK
December 23, 2016

(A Top Pick July 29/16. Up 8.13%.) Has a lot of clients that are really focused on how they are going to get the income they need. Every 5 years, these preferred shares get reset, and they benefit when interest rates are going up.

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(A Top Pick July 29/16. Up 8.13%.) Has a lot of clients that are really focused on how they are going to get the income they need. Every 5 years, these preferred shares get reset, and they benefit when interest rates are going up.

COMMENT
COMMENT
December 9, 2016

These are great vehicles, but in an upward climbing interest rate environment, it is going to be tougher for preferred shares, unless a lot of them are rate resets and are hedged to inflation.

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These are great vehicles, but in an upward climbing interest rate environment, it is going to be tougher for preferred shares, unless a lot of them are rate resets and are hedged to inflation.

COMMENT
COMMENT
December 9, 2016

This has a number of reset preferreds in it, which is why he thinks it took a big hit. If you are looking at this today, he thinks it is a reasonable Buy as an income component of your portfolio. He prefers preferred shares and high dividend paying common shares at this point, relative to the bonds. Thinks the next resets you will see on a number of these instruments are going to be higher as interest rates are rising.

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This has a number of reset preferreds in it, which is why he thinks it took a big hit. If you are looking at this today, he thinks it is a reasonable Buy as an income component of your portfolio. He prefers preferred shares and high dividend paying common shares at this point, relative to the bonds. Thinks the next resets you will see on a number of these instruments are going to be higher as interest rates are rising.

HOLD
HOLD
October 6, 2016

Sell? All of these tanked 1.5 years ago. A number of institutions have been buying the preferreds now, and he doesn’t see any reason to be selling this, once you have taken their hit. Also, as rates go up, some of the resets may be setting at a higher rate. A good fund and very well diversified. 5.5% dividend yield.

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Sell? All of these tanked 1.5 years ago. A number of institutions have been buying the preferreds now, and he doesn’t see any reason to be selling this, once you have taken their hit. Also, as rates go up, some of the resets may be setting at a higher rate. A good fund and very well diversified. 5.5% dividend yield.

PARTIAL SELL
PARTIAL SELL
August 15, 2016

Preferred shares. They had a good run-up in recent weeks. He is just starting to lighten up his position. It could go another 5%. We are getting close to 52 week highs. We cannot get back to the historic highs, however, of the last number of years.

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Preferred shares. They had a good run-up in recent weeks. He is just starting to lighten up his position. It could go another 5%. We are getting close to 52 week highs. We cannot get back to the historic highs, however, of the last number of years.

WEAK BUY
WEAK BUY
August 4, 2016

It got clobbered a year ago because all the rate reset preferred dropped. Right now they are offering a pretty good yield and they are well diversified. The problem with individual preferreds is the trouble getting rid of them. If he was going to buy a preferred, he would buy this.

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It got clobbered a year ago because all the rate reset preferred dropped. Right now they are offering a pretty good yield and they are well diversified. The problem with individual preferreds is the trouble getting rid of them. If he was going to buy a preferred, he would buy this.

TOP PICK
TOP PICK
July 29, 2016

Rate reset preferreds started coming out in 2008. They declare a dividend which has a formula attached to it. Every 5 years that rate gets reset based on a formula, a 5-year Government bond and some kind of spread. Sold off a lot last year, because the yield curve flattened significantly and there was a fear the rate resets were going to be a lot lower. However, what has tended to happen, is that you are now getting yields of about 5.5%. Actually one of the few securities that if interest rates go up, you are going to benefit from it. He could see about 5%-10% growth, plus reset rates going higher if rates do increase.

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Rate reset preferreds started coming out in 2008. They declare a dividend which has a formula attached to it. Every 5 years that rate gets reset based on a formula, a 5-year Government bond and some kind of spread. Sold off a lot last year, because the yield curve flattened significantly and there was a fear the rate resets were going to be a lot lower. However, what has tended to happen, is that you are now getting yields of about 5.5%. Actually one of the few securities that if interest rates go up, you are going to benefit from it. He could see about 5%-10% growth, plus reset rates going higher if rates do increase.

HOLD
HOLD
July 4, 2016

If interest rates stay where they are over the next 1-2 years, then this type of product and most dividend paying products will be fine more or less. He thinks most of the carnage was seen in 2015.

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If interest rates stay where they are over the next 1-2 years, then this type of product and most dividend paying products will be fine more or less. He thinks most of the carnage was seen in 2015.

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 this one probably has a little bit more in rate reset preferred shares. Those are the shares that will do well when interest rates start to move higher. The both are very similar though. 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 this one probably has a little bit more in rate reset preferred shares. Those are the shares that will do well when interest rates start to move higher. The both are very similar though. There is going to be some volatility in the preferred share market.

PARTIAL SELL
PARTIAL SELL
April 25, 2016

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.

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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.

PARTIAL BUY
PARTIAL BUY
March 21, 2016

Preferred Shares Index. Close to 6.5%. The preferred space has been really stressed. Convertible shares protect shareholders in a rising rate environment. However, that has not been the case so there has been low levels of interest in these shares. He has these holdings for clients as a diversification tool.

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Preferred Shares Index. Close to 6.5%. The preferred space has been really stressed. Convertible shares protect shareholders in a rising rate environment. However, that has not been the case so there has been low levels of interest in these shares. He has these holdings for clients as a diversification tool.

COMMENT
COMMENT
February 16, 2016

Preferreds got really clobbered this year, and are down about 24% on the year. A lot of institutions were buying them because they were representing pretty good value and paying about 6%. Has bought a little bit for some clients that were looking for yield. Doesn’t particularly like preferreds because you are basically exchanging the yield of a bond with the risk of a stock.

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Preferreds got really clobbered this year, and are down about 24% on the year. A lot of institutions were buying them because they were representing pretty good value and paying about 6%. Has bought a little bit for some clients that were looking for yield. Doesn’t particularly like preferreds because you are basically exchanging the yield of a bond with the risk of a stock.

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BMO S&P/TSX Laddered Preferred(ZPR-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 BMO S&P/TSX Laddered Preferred 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.

BMO S&P/TSX Laddered Preferred(ZPR-T) Frequently Asked Questions

What is BMO S&P/TSX Laddered Preferred stock symbol?

BMO S&P/TSX Laddered Preferred is a Canadian stock, trading under the symbol ZPR-T on the Toronto Stock Exchange (ZPR-CT). It is usually referred to as TSX:ZPR or ZPR-T

Is BMO S&P/TSX Laddered Preferred a buy or a sell?

In the last year, 1 stock analyst published opinions about ZPR-T. 0 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is DON'T BUY. Read the latest stock experts' ratings for BMO S&P/TSX Laddered Preferred.

Is BMO S&P/TSX Laddered Preferred a good investment or a top pick?

BMO S&P/TSX Laddered Preferred was recommended as a Top Pick by John Hood on 2020-04-08. Read the latest stock experts ratings for BMO S&P/TSX Laddered Preferred.

Why is BMO S&P/TSX Laddered Preferred 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 BMO S&P/TSX Laddered Preferred worth watching?

1 stock analyst on Stockchase covered BMO S&P/TSX Laddered Preferred In the last year. It is a trending stock that is worth watching.

What is BMO S&P/TSX Laddered Preferred stock price?

On 2020-05-29, BMO S&P/TSX Laddered Preferred (ZPR-T) stock closed at a price of $7.93.