Horizons launches floating rate preferred share ETF

Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are launching the Horizons Active Floating Rate Preferred Share ETF (HFP).

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HFP will seek to generate income consistent with prevailing short-term preferred share yields while stabilizing its market value from the effects of interest rate fluctuations. It will invest primarily in the preferred shares of Canadian companies.

It may also invest, to a lesser extent, in the preferred shares of companies located in the United States, as well as the fixed-income securities of Canadian and U.S. issuers, including other income-generating securities and exchange traded funds.

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HFP will generally maintain a portfolio duration of less than two years. It will be sub-advised by Fiera Capital Corporation and overseen by the same portfolio management team that sub-advises the Horizons Active Floating Rate Bond ETF and the Horizons Active Preferred Share ETF.

HFP has closed the offering of its initial Class E units and Advisor Class units and has begun trading on the TSX this morning.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.