A number of new ETFs have started trading on the Toronto Stock Exchange in 2017.
One of the newest is the Dynamic iShares Active Preferred Share ETF (TSX:DXP), a joint venture between fund manager Dynamic (which is owned by Bank of Nova Scotia) and iShares, the passive investing giant. The new fund began trading on January 27 and has a market cap of just $23 million and 1.1 million shares outstanding.
This fund is actively managed, with Marc-Andre Gaudreau acting as the main manager. Yet it comes with a very reasonable management fee of 0.58%. That’s only marginally higher than most passive preferred share ETFs.
Top holdings as of January 31 include TransCanada Corp (5.2% of assets), Brookfield Office Properties (3.6% of assets) and BCE Inc. (3.1% of assets). In total, the top 10 holdings are 28.7% of the total fund. The total number of holdings is not listed because the fund is so new.
According to the fund’s prospectus, it may also invest up to 49% of its assets in foreign securities, as well as using certain derivatives to hedge exposure to a certain asset class or to further increase income.
The fund has only declared one dividend, which was $0.065 per share for the month of February. Investors who hold shares as of February 23 will be paid on February 28. It works out to an annual yield of approximately 4%.
