BMO S&P/TSX Laddered Preferred

ZPR-T

Analysis and Opinions about ZPR-T

Signal
Opinion
Expert
BUY
BUY
January 18, 2016

Just bought some recently. The Preferred market has been so battered. He would not load up on this, but it would be one of the categories that he would include in a portfolio. He is stepping in now because it has a pretty good rate of return.

Show full opinionHide full opinion

Just bought some recently. The Preferred market has been so battered. He would not load up on this, but it would be one of the categories that he would include in a portfolio. He is stepping in now because it has a pretty good rate of return.

HOLD
HOLD
December 10, 2015

You can hold onto Preferred Shares for the longer-term. Preferred shares today are trading at about 125% greater than a yield on a 10 year bond with the same company. It is a better place to be than bonds would be. If interest rates are rising, that is a negative for preferreds. This is a good place to be.

Show full opinionHide full opinion

You can hold onto Preferred Shares for the longer-term. Preferred shares today are trading at about 125% greater than a yield on a 10 year bond with the same company. It is a better place to be than bonds would be. If interest rates are rising, that is a negative for preferreds. This is a good place to be.

BUY
BUY
December 3, 2015

Laddered preferred shares. This is not a bad way to enter the preferred share market. It is one of the fastest growing BMO ETFs today. This one is only investing in the very short end of the curve, resetting within 5 years. Government cuts in short term interest rates have impacted this one. He thinks the rates won’t go any further down in Canada.

Show full opinionHide full opinion

Laddered preferred shares. This is not a bad way to enter the preferred share market. It is one of the fastest growing BMO ETFs today. This one is only investing in the very short end of the curve, resetting within 5 years. Government cuts in short term interest rates have impacted this one. He thinks the rates won’t go any further down in Canada.

COMMENT
COMMENT
December 2, 2015

He generally does not like preferred shares. You are getting the yield of a bond and the risk of a stock. However, he has actually been buying a little of this. Yields are very attractive.

Show full opinionHide full opinion

He generally does not like preferred shares. You are getting the yield of a bond and the risk of a stock. However, he has actually been buying a little of this. Yields are very attractive.

HOLD
HOLD
November 24, 2015

This gives great diversification with a higher dividend and gives you instant diversification with hundreds of preferred shares. He likes the ladder component. As interest rates rise, you are going to have shares redeemed and invested at a higher rate. However, as interest rates have stayed lower longer than expected, we are now starting to get resets at a much lower level. Preferreds have come under tremendous pressure. Probably overdone in the short term and have gone down to very low values.

Show full opinionHide full opinion

This gives great diversification with a higher dividend and gives you instant diversification with hundreds of preferred shares. He likes the ladder component. As interest rates rise, you are going to have shares redeemed and invested at a higher rate. However, as interest rates have stayed lower longer than expected, we are now starting to get resets at a much lower level. Preferreds have come under tremendous pressure. Probably overdone in the short term and have gone down to very low values.

COMMENT
COMMENT
October 21, 2015

There are basically 2 types of preferred shares. Perpetuals and resets. One goes on with the same yield forever and on the other the rates are reset periodically. In January they all got clobbered because Bank of Canada cut the rates and the companies reset at a lower rate. Actually this is a pretty good time to be buying these. This one yields about 5.25%. He likes this.

Show full opinionHide full opinion

There are basically 2 types of preferred shares. Perpetuals and resets. One goes on with the same yield forever and on the other the rates are reset periodically. In January they all got clobbered because Bank of Canada cut the rates and the companies reset at a lower rate. Actually this is a pretty good time to be buying these. This one yields about 5.25%. He likes this.

BUY
BUY
August 10, 2015

The reset prefereds they hold are linked to 5 year Canada bonds. There is indiscriminant selling from retail investors that are scared. He thinks you have to stick with it.

Show full opinionHide full opinion

The reset prefereds they hold are linked to 5 year Canada bonds. There is indiscriminant selling from retail investors that are scared. He thinks you have to stick with it.

BUY
BUY
June 15, 2015

Preferred shares reset to the 5 year government of Canada bond. In a falling interest rate environment you get better performance from perpetual preferreds rather than from reset preferreds.

Show full opinionHide full opinion

Preferred shares reset to the 5 year government of Canada bond. In a falling interest rate environment you get better performance from perpetual preferreds rather than from reset preferreds.

BUY
BUY
May 13, 2015

Decent dividend. Preferred shares have been out of favour since 2008. This ETF is recovering and will continue to do so. The tax advantages to dividends are far higher than for bonds. He does not see a lot of risk. He prefers this to the bond market.

Show full opinionHide full opinion

Decent dividend. Preferred shares have been out of favour since 2008. This ETF is recovering and will continue to do so. The tax advantages to dividends are far higher than for bonds. He does not see a lot of risk. He prefers this to the bond market.

COMMENT
COMMENT
April 20, 2015

These reset preferreds are linked to the 5 year bond. So when the reset provisions come into play, if the bond yield is much lower, then the new coupon payment is going to be a lot less on the preferreds. They are more linked to fixed income than they are to equities. So if equity markets fall 10% on a correction, preferreds might fall 1%-2%, or sometimes they might go up depending on what is happening to interest rates at the time. They are a good diversifier because of this to get yield. He uses it by increasing his preferred exposure versus common. For example ZDV-T is the way to play high dividends in the Canadian market, which is 50 of the best dividend payers. When he fears the risk on the common shares, he wants a little more exposure to ZPR and when he feels the outlook is more for growth, he wants more ZDV. Meanwhile they both yield him more than 4% and it is a nice way to get Canadian tax efficient dividends in your taxable portfolio.

Show full opinionHide full opinion

These reset preferreds are linked to the 5 year bond. So when the reset provisions come into play, if the bond yield is much lower, then the new coupon payment is going to be a lot less on the preferreds. They are more linked to fixed income than they are to equities. So if equity markets fall 10% on a correction, preferreds might fall 1%-2%, or sometimes they might go up depending on what is happening to interest rates at the time. They are a good diversifier because of this to get yield. He uses it by increasing his preferred exposure versus common. For example ZDV-T is the way to play high dividends in the Canadian market, which is 50 of the best dividend payers. When he fears the risk on the common shares, he wants a little more exposure to ZPR and when he feels the outlook is more for growth, he wants more ZDV. Meanwhile they both yield him more than 4% and it is a nice way to get Canadian tax efficient dividends in your taxable portfolio.

COMMENT
COMMENT
April 13, 2015

He has a position of this and it has been doing horribly. The reset preferreds link to the five-year Canada bond. At about the $13.40 point, the Gov of the Bank of Canada surprised every analyst and every portfolio manager in Canada by doing a rate cut. Because of this, the five-year Canada bond plummeted in weeks. It stabilized for a while and he started adding, but it now seems to be in a panic phase where individual investors are selling these holdings. Institutional investors, from what he hears, are buying on the other side of this. He still holds his. It is a fine way to diversify.

Show full opinionHide full opinion

He has a position of this and it has been doing horribly. The reset preferreds link to the five-year Canada bond. At about the $13.40 point, the Gov of the Bank of Canada surprised every analyst and every portfolio manager in Canada by doing a rate cut. Because of this, the five-year Canada bond plummeted in weeks. It stabilized for a while and he started adding, but it now seems to be in a panic phase where individual investors are selling these holdings. Institutional investors, from what he hears, are buying on the other side of this. He still holds his. It is a fine way to diversify.

DON'T BUY
DON'T BUY
April 13, 2015

Preferred shares have been really hit lately. He has never been a fan of preferreds. You are getting a return of bonds and the risk of stocks.

Show full opinionHide full opinion

Preferred shares have been really hit lately. He has never been a fan of preferreds. You are getting a return of bonds and the risk of stocks.

WEAK BUY
WEAK BUY
April 6, 2015

Laddered Preferred ETF. It is similar to the 5-year government of Canada rate because of the preferred resets. He looks at these as a way to diversify, but if interest rates go down in Canada it will suffer.

Show full opinionHide full opinion

Laddered Preferred ETF. It is similar to the 5-year government of Canada rate because of the preferred resets. He looks at these as a way to diversify, but if interest rates go down in Canada it will suffer.

COMMENT
COMMENT
March 17, 2015

Some people like Preferreds in a ladder, but that is not his preferred way of doing it. Most people don’t think of a ladder as being that important.

Show full opinionHide full opinion

Some people like Preferreds in a ladder, but that is not his preferred way of doing it. Most people don’t think of a ladder as being that important.

BUY
BUY
March 9, 2015

Preferreds have their place in everyone’s portfolio. You could have 5 to 15% depending on your outlook on preferred shares. He uses them in his sleep at night portfolio.

Show full opinionHide full opinion

Preferreds have their place in everyone’s portfolio. You could have 5 to 15% depending on your outlook on preferred shares. He uses them in his sleep at night portfolio.

Showing 31 to 45 of 61 entries