Horizons Active Preferred Share ETF (HPR:CA)
The investment objective for the Horizons Active Preferred Share ETF is to provide dividend income while preserving capital by investing primarily in preferred shares of Canadian companies.
Horizons HPR may also invest in preferred shares of companies located in the United States, fixed-income securities of Canadian and U.S. issuers, including other income generating securities, as well as Canadian equity securities, mutual funds, derivatives for currency hedging purposes and exchange traded funds that issue index participation units, but it will not invest in leveraged ETFs.. Horizons HPR, to the best of its ability, seeks to hedge its non-Canadian dollar currency exposure to the Canadian dollar at all times.
If market conditions require, in order to preserve capital, the Active ETFs may seek to invest a substantial portion of its assets in cash and cash equivalents. HPR will not engage in short selling transactions.
Although the manager is able to invest in securities other than preferred shares, as at June 30, 2012, the ETF held preferred shares representing 97.35% of the ETF's assets, with approximately 73.7% in shares issued by Financial companies.
IFM Investment Tip:
Although the name states it is an Active preferred share ETF, the emphasis should be on Active. With its high Portfolio Turnover Ratio (PTR), this ETF is very Active and it may not suit those investors seeking a steady income stream.
Note: This ETF was formerly known as Horizons Preferred Share ETF.
- Fact Sheet
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- Underlying Index/Commodity
- None. Actively managed.
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Cdn$ (The ETF tries to hedge any foreign investment exposure back the the Cdn$.)
- Date Established
- November 23, 2010
- Annual Management Fee
- 0.55% Plus 0.10% Operating Expense (2016)
- Trading Expense Ratio (TER)
- 0.10% (2016)
- Management Expense Ratio (MER)
- 0.75% (2016)
- Yes - In 2016, the ETF had a yield equal to 3.93% net of Return of Capital (ROC) payments.
- Distribution Dates
- Monthly - at the end of each month.
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Rebalancing Frequency
- Portfolio Turnover Ratio
- Was 32.72% in 2016, 37.22% in 2015, 40.30% in 2014, 45.62% in 2013, 61.25% in 2012, 93.83% in 2011 & 18.25% in 2010
- Simplified Prospectus
- Last Updated