Horizons ETFs to track Solactive Index for Canadian Preferred Share ETF
Solactive is pleased to announce that Canadian ETF provider Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) utilizes the Solactive Laddered Canadian Preferred Share Index as the underlying index for the Horizons Laddered Canadian Preferred Share Index ETF (“HLPR”), which lists on the Toronto Stock Exchange today. The index includes more than 170 Canadian preferred share securities that generally have an adjustable dividend rate.
Essentially, preferred shares are regarded as a hybrid of equity and debt securities, exhibiting characteristics of both instruments. Typically issued by large, well-established companies, preferred shares bear the potential of possible price appreciation or depreciation like common stocks. Additionally, they pay a fixed or adjustable dividend over a set term, which is senior to the dividend of ordinary shares, hence the term “preferred”.
Timo Pfeiffer, Head of Research at Solactive comments: “Preferred share ETFs are very popular investment vehicles in Canada, and we are quite pleased with being chosen as the index provider for this significant ETF release.”
Steve Hawkins, President and CEO at Horizons ETFs, comments, “HLPR’s launch marks the seventh Total Return Index (“TRI”) ETF that we’ve introduced with the support of Solactive AG. Our partnership with Solactive has enabled us to continue to bring a variety of very popular and innovative index strategies to Canadian investors, with the added advantage of using our unique Total Return Index ETF structure. With the addition of HLPR to our TRI line-up, investors now have a more tax efficient option for accessing a diverse portfolio of Canadian preferred share securities through a single trade.”
The ETF will be listed on the Toronto Stock Exchange on February 27th.