iShares S&P/TSX Canadian Preferred Share Index ETF (CPD:CA)
The investment objective of the ETF is to replicate, to the extent possible, the performance of the S&P/TSX Preferred Share Index, net of expenses. The Index is an investable benchmark representing the Canadian preferred share market and measures the performance of a selected group of preferred shares listed on the TSX.
The investment strategy of the ETF is to invest in and hold the constituent securities of the Index in substantially the same proportion as they are reflected in the Index or to invest in a manner that causes the Fund to replicate the performance of the Index.
IFM Investment Tip:
This is the oldest preferred share ETF in Canada. The ETF's rate of return, since its inception, was hurt badly by the financial crisis of 2008 - 2009 - purely bad timing. (Investment performance always looks better when the returns are positive in the first couple of years.)
This ETF has a high Portfolio Turnover Ratio (PTR) - the ratio was 50.63% in 2016. Preferred shares are considered to be an income investment better suited to a buy and hold investment strategy, not a trading strategy. It appears from the ETF's PTR it is actively traded.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- S&P/ TSX Preferred Share Index
- Asset Category
- Fixed Income Investments
- Average Duration
- Average Maturity
- Date Established
- April 9, 2007
- Annual Management Fee
- 0.45% Plus 0.06% Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.02% (2016)
- Management Expense Ratio (MER)
- 0.53% (2016)
- Additional Performance Fee(s)
- 0.50% - Additional fee applicable to Advisor Class shares. (MER = 1.08% for Advisor Shares in 2016)
- Yes - In 2016, the ETF had a yield equal to 4.68% net of Return of Capital (ROC) payments.
- Distribution Dates
- Monthly - at the beginning of each month.
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes. Visit ETF Website for details.
- Tax Efficient
- Rebalancing Frequency
- Semi-annual - January and July
- Portfolio Turnover Ratio
- Was 50.63% in 2016, 31.05% in 2015, 34.36% in 2014, 42.66% in 2013, 35.00% in 2012, 30.50% in 2011 & 64.37% in 2010.
- Simplified Prospectus
- Last Updated