Investment objective
The BMO Laddered Preferred Share Index ETF (ZPR) has been designed to replicate, to the extent possible, the performance of the Solactive Laddered Canadian Preferred Share Index, net of expenses. The Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index. The constituents are preferred shares issued by major Canadian businesses.
ZPR is ideal for investor who are seeking a fixed income product with high dividend yield. These ETFs are pretty popular because they offer investors attractive yields with the possibility of capital appreciation. Among all fixed-income products, there’s no question that preferred shares usually provide the best return compared to bonds. This being said a preferred share carries more risk than owning a bond.
ZPR stock analysis and comments
ZPR has short-duration preferred shares (meaning the fund invests in preferred shares that have a short term maturity). ZPR also has rate reset features. If you think we will see rising rates, which is a reasonable assumption, they will ratchet their rates up to keep up with rising interest rates. If rates rise, it does participate and offset some inflation.
Thanks to the rate reset feature, ZPR offers more stability. Additionally, it is professionally managed by BMO Global Asset Management.
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MER and AUM: ZPR vs DXP,RPF,HPR and CPD
| Name-Ticker | AUM | MER |
|---|---|---|
| BMO Laddered Pref Share – ZPR | 2,185 | 0.50 |
| Horizons Active Pref Share – HPR | 1,602 | 0.64 |
| Ishares S&P TSX CDN Pref – CPD | 1,386 | 0.50 |
| RBC Canadian Pref Share – RPF | 904 | 0.58 |
| Dyn Ishares Active Pref Shares – DXP | 697 | 0.67 |
Source: Barchart
Performance: ZPR vs DXP,RPF,HPR and CPD
Updated daily
| ETF | Div Yield |
|---|---|
| ZPR | 5.95% |
| HPR | 5.84% |
| CPD | 5.49% |
| RPF | 5.60% |
| DXP | 4.58% |
Source: Barchart / Dividend yield as of November 23rd
ZPR Stock: Morningstar rating
ZPR Monthly Dividend distribution
| Distrib Period | Ex-Div Date | Pay Date | Cash Distrib |
|---|---|---|---|
| Jan, 2022 | Jan 27, 2022 | Feb 02, 2022 | 0.045000 |
| Feb, 2022 | Feb 24, 2022 | Mar 02, 2022 | 0.045000 |
| Mar, 2022 | Mar 29, 2022 | Apr 04, 2022 | 0.045000 |
| Apr, 2022 | Apr 27, 2022 | May 03, 2022 | 0.045000 |
| May, 2022 | May 27, 2022 | Jun 03, 2022 | 0.045000 |
| Jun, 2022 | Jun 28, 2022 | Jul 05, 2022 | 0.045000 |
| Jul, 2022 | Jul 27, 2022 | Aug 03, 2022 | – |
| Aug, 2022 | Aug 29, 2022 | Sep 02, 2022 | – |
| Sep, 2022 | Sep 28, 2022 | Oct 05, 2022 | – |
| Oct, 2022 | Oct 27, 2022 | Nov 02, 2022 | – |
ZPR Holdings
- by preferred shares
| Weight (%) | Name |
|---|---|
| 1.70% | TC ENERGY SR 15 4.90 PFD |
| 1.65% | ROYAL BANK SR BD 3.20 PFD |
| 1.57% | BCE INC SR AK 2.954 PFD |
| 1.38% | CANADIAN I SR 45 4.40 PFD |
| 1.32% | ENBRIDGE I SR 19 4.90 PFD |
| 1.30% | TORONTO-DO SR 5 3.876 PFD |
| 1.22% | ENBRIDGE I SR 17 5.15 PFD |
| 1.17% | INTACT FIN SR 3 3.332 PFD |
| 1.12% | ENBRIDGE I SR 11 4.40 PFD |
| 1.09% | CANADIAN I SR 47 4.50 PFD |
ZPR stock: Sector Allocation
ZPR invests primarily in preferred shares of stocks operating in the financial and oil/Gaz industry.
- 26.69%, Diversified Banks.
- 21.85%, Oil & Gas Storage & Transportation.
- 8.21%, Life & Health Insurance.