Invesco has announced [on 2023-1-23] (although not on their website, as far as I can see):
Invesco Canada Ltd. (“Invesco”) announced today proposed changes to its Canadian exchange-traded funds (ETFs) and mutual fund line-up. The objective of this initiative is to simplify the firm’s product offerings to enable it to sharpen the focus on areas of highest client demand. Another benefit will be increased capacity to provide better service and support while investing in those high demand products. The products listed below will be set to be terminated in 2023:
The firm plans to terminate the following TSX-Listed ETFs, effective close of business on or about April 21, 2023:
Terminating fund Ticker Symbol Invesco Canadian Preferred Share Index ETF PPS Invesco FTSE RAFI Canadian Small-Mid Index ETF PZC Invesco FTSE RAFI Global+ Index ETF PXG, PXG.U Invesco Global Shareholder Yield ETF PSY, PSY.U Invesco LadderRite U.S. 0-5 Year Corporate Bond Index ETF USB, USB.U Invesco S&P/TSX REIT Income Index ETF REIT Invesco S&P Emerging Markets Low Volatility Index ETF ELV Invesco S&P International Developed Low Volatility Index ETF ILV, ILV.F Invesco Senior Loan Index ETF BKL.C, BKL.U, BKL.F The TSX-Listed ETFs will continue to be listed on the Toronto Stock Exchange (“TSX”) until the close of business on or about April 17, 2023, when they are expected to cease trading and be delisted. No further subscription orders for units of the TSX-Listed ETFs will be accepted after the close of business on April 5, 2023. Unitholders of the TSX-Listed ETFs may continue to submit requests to exchange units until close of business on or about April 14, 2023 and to redeem units until April 21, 2023.
There goes another! It just goes to show what a 10+ year long bear market can do to retail sentiment.
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
I’ve been piling into preferreds over the past few months and they keep inching down in value. I hope this is a sigh of a bottom.
Agreeing with fsabbagh- Pref shares look attractive, seem attractive, and keep dropping. Looking to some of you more experienced pref investors, what needs to happen to turn this ship around?
“what needs to happen to turn this ship around?”
More buyers like Habsfan and fsabbagh. I’m not being facetious, at some point prefs are just irresitable. I think we are there but it took a couple of years for the market to figure out pot stocks were insane (and bitcoin still fetches more than zero) so I won’t/can’t put a date on it.
Habsfan, investors are waiting for the coming credit/liquidity crunch expected for Q3 to Q1 next year. Pref are very sensitive to liquidity so not a good place to be in current tightening environment. Once the yield curve will not be anymore inverted, that pref value will have halved and that central banks are back printing money, investors will jump back on the ship.
Same here, I am bit puzzled with the current situation.
Perpetuals have by and large been very stable over the last month or so and most issues yield about 6.2% which is high historically.
In the meantime however, RR have been hit pretty hard and it even seems as though the decline has accelerated over the last few days.
It isn’t specific to one issuer but most of them (BN, TRP, ENB, FFH, etc.).
So the current situation is fun… rates are higher than they have been for about 2 decades and many RR are hovering near their all-time… lows (outside of the COVID crash).
So yeah, I am also struggling to understand what is going on.
Should market participants anticipate central banks to drastically cut rates in the next few months it should at least lift a bit the perpetuals but it is not happening.
And still, even assuming the GOC 5yr bond yield at 0.5%(!), some RR would still reset at 5+% based on their current price which is pretty good still.
Or maybe people are scared of an upcoming black-swan event, rates going back to 0 which would still hurt RR and barely help perps since when people panic, they sell indiscriminately.
Anyway, I just wanted to take part in this discussion 🙂
“what needs to happen to turn this ship around?”
More buyers like Habsfan and fsabbagh. I’m not being facetious, at some point prefs are just irresitable. I think we are there
I’d agree with you. I will also note that the nice thing about the current situation is that we are being well paid while we wait!
Thank you to the folks who replied to my post. I appreciate knowing there are a few other pref investors out there. Usually when I mention that I own preferred shares the people I tell don’t know what I’m talking about. Clearly holding pref shares means being willing to be in the minority.
Well paid while we wait indeed. You can get National Bank prefs at near 7% for 5 years. And what about those BN floaters at 10.5%. I know that prime is expected to drop next year but that yield premium versus prime rate is very high. Even BCE floaters are in the 9.5% for those who don’t like Brookfield.
Thanks everyone for your feedback. I will keep accumulating preferreds with the help of Prefletter.
newbiepref, I like the BCE floaters as well under $18. These will pay 40% above prime, probably for at least the next decade.
Lowest Prime rate from 1956 thru 2000 was 4.75%. IF ZIRP is over and interest rates revert to pre 2001 historical ranges, then the prime rate may bottom out above 5% in future cycles, resulting in a minimum yield of 7%.
7% is very competitive with the TSX composite average return for the past 25 years. And with prime at 6.70%, the BCE floater yield is approx 9.4%.
“what needs to happen to turn this ship around?”
Even if they look good with the proposed measures to tax the preferred shares dividends (see https://www.theglobeandmail.com/business/article-insurers-preferred-shares-tax-change ) I think the they will continue to go down. Also it would be better to keep them in RRSP.
Canada 5 year bond at 3.40% this morning.
lots of fixed rate prefs will rest in the 9-10% range.
floaters now in the 10-11% range.
if insurers and banks want to sell off their prefs, that’s fine. they want to give me even higher yields, that’s even better. i’ll buy what i can.
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]
[…] PowerShares Canadian Preferred Share Index Class, Series F (PPS) are no longer available since the fund has been terminated. Performance was last reported for the fund to month-end, March […]