# XPF.TO iShares Prefereds



## Doug2000 (Apr 6, 2011)

I have owned a good sized position of iShares Prefered Shares ETF, XPF.TO for about 3 years. I bought it for the healthy dividend of 5.5%. I bought it figuring it was really diversified in names we all like and hear about and is also 50% Can, 50% U.S. I have quite a few shares from the drip, but the share price has pulled back 10% or so. When I bought it I didn't have a really good understanding of the Prefered market almost trading like bonds. 
Looking for comments, buy more, hold on, or dump it all.


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## HaroldCrump (Jun 10, 2009)

Doug2000 said:


> When I bought it I didn't have a really good understanding of the Prefered market


Prefs can be extremely complex, and IMHO, should not be bought by those that are not able to understand all the terms and conditions by reading the offer prospectus.



> almost trading like bonds


Correct - prefs have hybrid characteristics of bonds and equities.



> Looking for comments, buy more, hold on, or dump it all.


Impossible to answer without knowing your asset allocation, investing goals, and similar related information.
That said, ask yourself the following question - _do I understand why preferreds have dropped 10% in recent months_?
In fact, certain prefs have dropped more than 10% (nearly 20% in some cases).
Do you know why?

If you cannot explain this to yourself clearly, you should not be buying preferreds at all.


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## tygrus (Mar 13, 2012)

I rode CPD down a few years ago and then held XPF for the better part of a year before I dumped it all. Would never hold them again because of the rate resets and interest rate sensitivity. If I am going to risk rate sensitivity to that degree, then I am going to get yields that are commensurate with that, so I bought REITs instead.


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## Moneytoo (Mar 26, 2014)

Have a bit of PFF and a lot of ZPR (well, not really a lot - both are 5% of our combined portfolio ), holding & DRIP-ing, adding a few shares here and there when I have a bit of leftover cash. There was a thread here a few months ago that quoted a few articles, but maybe this one will help: http://www.greaterfool.ca/2015/07/19/special-2


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## Causalien (Apr 4, 2009)

I find xpf very interesting as 50% of its holding is in PFF that has actually gone up in value, not to mention the exchange rate effect.

For me, buying it now due to mispricing is going to be perfect for me. But I think the greatest buying point will be when fed raises interest rate and BOC cannot follow.


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