Global X Canada Preferred ETF To Debut On Wednesday

Global X, the New York-based ETF issuer with 31 funds currently trading and over $1.8 billion assets under management, plans to add to its lineup of Canada-specific ETFs with the debut of the Global X Canada Preferred ETF on Wednesday. The new ETF will trade on the New York Stock Exchange under the ticker “CNPF” and feature an expense ratio of 0.58%. CNPF will track the Solactive Canada Preferred Stock Index, an index comprised of preferred issues listed on the Toronto Stock Exchange. In an environment of depressed interest rates, investors have taken to preferred stocks and various ETFs that track the asset class as a way of capturing yield. Popular preferred stock ETFs inlcude the PowerShares Preferred Portfolio PGX, which has $1.4 billion in assets under management, and the PowerShares Financial Preferred Portfolio PGF, which has $1.8 billion in AUM. Other well-established preferred stock ETFs include the iShares S&P U.S. Preferred Stock Index ETF PFF and the SPDR Wells Fargo Preferred Stock ETF PSK. The Global X Canada Preferred ETF will be the fifth Canada-specifc ETF available to U.S. investors joining the iShares MSCI Canada Index Fund EWC, the Guggenheim Canadian Energy Income ETF ENY, the IQ Canada Small Cap ETF CNDA and the Global X S&P/TSX Venture 30 Canada ETF TSXV, which Global X rolled out earlier this year. When CNPF starts trading, it will mark the fifth new fund introduced by Global X in May alone.