Horizons introduces floating-rate ETF

Toronto-based Horizons ETFs Management (Canada) Inc. and its affiliate, AlphaPro Management Inc., have expanded their product shelf with the addition of Horizons Active Floating Rate Preferred Share ETF. This new fund provides Canadian investors with the opportunity to gain floating-rate exposure from North American preferred shares through an ETF. The ETF seeks to generate income consistent with prevailing short-term preferred-share yields while insulating the ETF’s market value from the effects of interest rate fluctuations. The ETF will invest primarily in the preferred shares of Canadian companies and may also invest, to a lesser extent, in the preferred shares of U.S. companies, as well as in the fixed-income securities of Canadian and U.S. issuers, including other income-generating securities and ETFs. The ETF will be subadvised by Montreal-based Fiera Capital Corp. Preferred shares have become popular among Canadian investors looking for a higher level of tax-efficient income in today’s low-rate environment, says Howard Atkinson, president of Horizons ETFs.

Compiled by Clare O’Hara (cohara@investmentexecutive.com).