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BMO Laddered Preferred Share Index ETF BLPEF


Primary Symbol: T.ZPR Alternate Symbol(s):  T.ZPR.U

The ETF seeks to replicate, to the extent possible, the performance of a Canadian preferred shares index, net of expenses. Currently, the ETF seeks to replicate the performance of the Solactive Laddered Canadian Preferred Share Index (the Index). The investment strategy of the ETF is to invest in and hold the constituent securities of the Index in the same proportion as they are reflected in the Index. The Manager may also use a sampling methodology in selecting investments for the ETF. As an alternative to or in conjunction with investing in and holding the constituent securities, the ETF may invest in or use certain Other Securities (as defined in the prospectus) to obtain exposure to the performance of the Index.


TSX:ZPR - Post by User

Post by rationalon Jun 23, 2023 10:15pm
289 Views
Post# 35512498

???

???

The longer interest rates continue to climb (or at least remain stable), the more I expected this etf to climb. 


the way I understand it, the holdings are staggered such that each year about 20% are reset based on current rates.

though central banks are prone to slashing rates to stimulate the market (when deemed necessary), if inflation remains high, they are unlikely to drop, and I like the theory that higher inflation may stick around longer because the pandemic inflation effect masked a more insidious source of inflation: many nations are facing the same demographic labour shortage we see in North America. China, for instance,  probably worse than us in coming years. For this reason, wages will likely have to rise as labor supply tightens around the world. 


thoughts?

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