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BMO Laddered Preferred Share Index ETF (ZPR)
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Global X Active Preferred Share ETF (HPR)
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RBC Canadian Preferred Share ETF (RPF)
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TD Active Preferred Share ETF (TPRF)
Q: Not only are preferred share ETFs seeming to hold their stability well of late but they're outperforming just about any other ETF I own, be they Canadian dividends, US tech, or international. Obviously, there's a market reason for this. Would you know it and whether it's likely to continue?
5i Research Answer:
Preferreds are sensitive to rates, and central banks are lowering rates. Now, market rates are not moving down but investors we think are looking forward. Also, there remains some concern on the economy, and thus preferreds are seen as safer if the economy wobbles. Finally, the sector was SO beaten up it was likely due for at least some recovery from depressed levels. It was an ugly four years for the sector.