iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged) (XPF:CA)
The investment objective of the ETF is to provide income by replicating, to the extent possible, the performance of the S&P/TSX North American Preferred Stock Canadian Dollar Hedged Index, net of expenses. The Index is a modified market capitalization-weighted index provided by S&P Dow Jones Indices LLC. The Index is rules-based and comprised of preferred equity securities issued in the United States and Canada. Securities must pass several screening criteria, including size and liquidity, in order to be eligible for inclusion. The Index is hedged to Canadian dollars.
The primary investment strategy of the ETF is to invest in securities of one or more exchange traded funds managed by BlackRock Canada or an affiliate, and/or securities of the constituent issuers included in the Index, such that the resulting portfolio will have characteristics that closely match the characteristics of the Index. The Fund will seek to hedge any resulting foreign currency exposure back to Canadian dollars.
IFM Investment Tip:
This ETF invests in Canadian and US preferred shares. When comparing this ETF's annual distributions yield and distributions with those of other ETFs, investors should bear two things in mind:
- The dividends paid on the US preferred shares will not benefit from the Canadian dividend income tax credits and
- A portion of the distributions received from this ETF is a return of the investor's own capital.
- Foreign withholding income tax payments may also be a factor to consider.
These characteristics make it difficult to compare this ETF's yield and distribution with other ETFs, especially on an after-tax basis. (See the 2015 Distribution Tax Characteristics for specific details)
The ETF also has a very high Portfolio Turnover Ratio (averaging 40.43% per year), which may be a concern for investors using a buy and hold investment approach.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- S&P/TSX North American Preferred Stock Canadian Dollar Hedged Index
- Asset Category
- Fixed Income Investments
- Average Duration
- Average Maturity
- Cdn$ (US$ currency exposure is hedged)
- Date Established
- November 16, 2010
- Annual Management Fee
- 0.45% Plus 0.02% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.03% (2016)
- Management Expense Ratio (MER)
- 0.50% (2016)
- Additional Performance Fee(s)
- BlackRock Cda is entitled to an imbedded Underlying Product Fee in addition to their Management Fee. See prospectus.
- Yes - In 2016, the ETF had a yield equal to 4.84% 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 27.97% in 2016, 38.84% in 2015, 27.81% in 2014, 59.94% in 2013, 47.57% in 2012, 30.46% in 2011 & 12.67% in 2010.
- Simplified Prospectus
- Last Updated