Description

The HLPR ETF provides an investment avenue into preferred shares traded on the Toronto Stock Exchange. These securities typically boast an adjustable dividend rate and are strategically arranged in a laddered fashion, with equal weight distributed among various annual reset term segments. Preferred shares themselves, commonly issued by prominent, financially sound companies, are hybrid instruments possessing qualities of both debt and equity. They offer a fixed or variable income stream over a defined duration, similar to bonds, yet also carry the potential for capital appreciation or depreciation, much like common stocks. This fund is ideal for investors targeting an overall return from Canadian rate-reset preferred shares, who are comfortable with volatility in their portfolio's value, and whose primary goal is not consistent income payouts. HLPR's objective is to mirror, as closely as feasible, the total return performance of the Solactive Laddered Canadian Preferred Share Index, accounting for operational costs. This underlying Solactive index is composed of Canadian preferred shares predominantly characterized by an adjustable dividend rate.