CanETF Portfolio Trade #4: More U.S. Preferreds

Hot on the heels of trade #3, the CanETF Portfolio seized the opportunity to add to the iShares U.S. Preferred Stock ETF (PFF) holding. The purchase of 20 more units was done at $36.30, only a penny above the new 52-week low established today at $36.29.

PFF 10032018

The 12 month trailing yield at this price is 5.7%. The buy even took advantage of the ETF trading at a discount to NAV, a welcome bonus given that the fund typically trades at a small premium (as per the Morningstar.com PFF page).

Trade 4 Order PFF

Trade 4 Filled PFF

Trade 4 Confirmation PFF

This purchase represents a milestone for the Portfolio: the USD cash balance is now more than half invested.

 Current Value (In CAD)Current Allocation
CAD TFSA
Cash$5,000.0043.50%
USD RRSP
Cash$2,988.2426.00%
PFF$1,865.2616.23%
VWO$1,034.779.00%
FREL$605.415.27%
USD RRSP Total$6,493.6956.50%
Grand Total (CAD at $1.2832 per USD as of 10/3/2018)$11,493.69100.00%

At over 16%, the allocation to U.S. preferred shares is a full one for now. The Portfolio will more likely bear the brunt of any further declines in price rather than using it as an opportunity to average down.

The CanETF Portfolio is not meant to be taken as investment advice. Please conduct due diligence on any ETF investment you are considering, including but not limited to a review of the prospectus, underlying benchmark methodology (if applicable), portfolio characteristics, holdings, performance since inception, role in your existing portfolio, and outlook for future performance.

2 Replies to “CanETF Portfolio Trade #4: More U.S. Preferreds”

Leave a Reply

Your email address will not be published. Required fields are marked *