Toronto-based Evolve Funds Group Inc. has launched the Evolve Dividend Stability Preferred Share Index ETF, which began trading on the Toronto Stock Exchange (TSX) on Thursday.
According to a release, the ETF is intended to replicate the performance of the Solactive Dividend Stability Canada Preferred Share Index, which measures the performance of up to 50 preferred equity securities of companies listed on the TSX based on market capitalization. All securities in the index have a credit rating of P3L or higher and a market price close to par.
“In the past year the performance of the Canadian preferred market has been challenging and historically this has led to tax loss selling pressure at year end,” Raj Lala, president and CEO at Evolve ETFs, said in a statement.
Lala added that Evolve’s new ETF could be a solution “for investors who are considering tax loss selling and still want to remain invested in the asset class through a portfolio of Canadian preferred shares with high credit quality, stable dividends, and currently trading close to par.”