Roger Rouleau, Port­fo­lio Man­ager, Nat­can Invest­ments, man­ager of the Hori­zons Alphapro Pre­ferred Share ETF (HPR:TSX) shares his thoughts on Cana­dian pre­ferred shares:

Ques­tions dis­cussed (hover over the thumb­nails in the viewer for video info):
1. HPR has hand­ily out­per­formed other pre­ferred share ETFs since incep­tion. What has drive this out-performance? Can you explain a lit­tle about why pre­ferred share index strate­gies are inef­fi­cient ver­sus a well thought out active strategy?

2. Many investors look to pre­ferred hares as an income invest­ment strat­egy. What's your out­look for the return on pre­ferred shares, par­tic­u­larly ver­sus the cor­po­rate bond debt of the same issuers?

3. We've seen a cou­ple of the large insur­ers, Sun Life and Man­ulife just com­plete some robust pre­ferred share issues. Have you bought these? What's your out­look for pre­ferred share issues from the insurers?

Source: Hori­zons ETFs

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