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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Good Monday Morning to all at 5i!
I have both of there ETFs and have had them for a while. They are both underwater and I was wondering about their future prospects since interest rates are falling. Do they have a chance of seeing an upside???
Cheers,
Tamara
I have both of there ETFs and have had them for a while. They are both underwater and I was wondering about their future prospects since interest rates are falling. Do they have a chance of seeing an upside???
Cheers,
Tamara
5i Research Answer:
We certainly think there is some upside for both. For XHY, the US has just started cutting rates and further cuts are expected so we think XHY will benefit. For CPD, Canada's rate cutting cycle has been well underway and when rates come down to lower level, preferred shares will look more attractive due to higher yields. Both have performed well over the last year, and as rates continue to come down in both markets we think both will perform well.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD, XHY.