BEPR currently yields 9% which would increase our income, while providing greater diversification nIt seems to have paid a monthly since at least 2018.
What is 5’s view on BEPR and the safety of its distribution vs Canadian Preferred shares?
Keep in mind that a higher yield typically means higher risk, though if comparing to resets in a low rate environment it is not always apples/apples. We do not know what is currently held, so we can only look to BEPR in isolation. As an ETF, it will of course be more diversified, at the cost of a management fee. YTD return is 12.93%, so it has enjoyed the sector rally. Assets are fairly small at $65M. It owns units in a larger fund, BPRF. BEPR has a higher yield and a better YTD return (9.71%). We do not have any particular issues with the securities it owns, but only 15% is in Canada so we do not know all the securities well. 56.5% is US, UK is 9%. Banks are 45.7% and insurance is 31% so it is very heavily skewed towards the financial services sector. We would consider it 'OK' as a replacement, but only if an investor can accept and is comfortable with such exposure. We have no issues with the fund set up or history.