3 Best Preferred Shares ETFs in Canada (June 2026)
The best preferred shares ETFs in Canada include CPD.TO (~0.61% MER), ZPR.TO (~0.50%), and HPR.TO (~0.49%). These ETFs invest in Canadian preferred shares, offering higher income than many bonds, but with sensitivity to interest rates and limited long-term capital growth.
Preferred shares ETFs are designed for Canadian investors seeking steady income with lower volatility than common stocks. ETFs like CPD.TO, ZPR.TO, and HPR.TO provide exposure to Canadian preferred shares, which offer fixed or floating dividend payments and sit higher than common equity in a company’s capital structure.
The key appeal of preferred shares ETFs is income stability and higher yields compared to traditional bonds. However, they are sensitive to interest rates and credit conditions, which can impact both price and distributions.
In this guide, we break down the best preferred shares ETFs in Canada, comparing yield, structure, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or income-focused portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top CPD.TO iShares S&P/TSX Canadian Preferred Share Index ETF Common Class | — | $1.1B | 5.00% | +1.92% | +13.82% |
ZPR.TO BMO Laddered Preferred Share ETF | — | $1.6B | 5.04% | +4.55% | +18.66% |
HPR.TO Global X Active Preferred Share ETF | — | $932M | 4.71% | +3.12% | +17.39% |
What Is an ETF?
A preferred shares ETF in Canada is an exchange-traded fund that invests in preferred shares issued by corporations, typically banks, utilities, and insurance companies. Preferred shares pay regular dividends and have priority over common shares in the event of liquidation, but usually do not offer the same growth potential.
For example, CPD.TO (~0.61% MER) tracks a broad Canadian preferred share index, offering diversified exposure across issuers. ZPR.TO (~0.50% MER) focuses on rate-reset preferred shares, which can benefit when interest rates rise, while HPR.TO (~0.49% MER) provides active management with a mix of preferred share strategies.
Preferred shares ETFs are commonly used in TFSAs and non-registered accounts for income generation. Investors should consider interest rate sensitivity, credit risk, and the type of preferred shares held when selecting an ETF.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares S&P/TSX Canadian Preferred Share Index ETF Common Class
$14.10
+1.92% YTD
Returns
YTD
+1.92%
1Y
+13.82%
3Y
+15.92%
5Y
+5.73%
BMO Laddered Preferred Share ETF
$12.87
+4.55% YTD
The BMO Laddered Preferred Share Index ETF has been designed to replicate, to the extent possible, the performance of the Solactive Laddered Canadian Preferred Share Index, net of expenses. The Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index.
Returns
YTD
+4.55%
1Y
+18.66%
3Y
+19.38%
5Y
+7.87%
Global X Active Preferred Share ETF
$10.76
+3.12% YTD
Returns
YTD
+3.12%
1Y
+17.39%
3Y
+19.24%
5Y
+7.45%
Pros & Cons
Pros
- Higher income potential compared to many bond ETFs
- More stable dividends than common equities
- Priority over common shares in the capital structure
- Diversification across issuers like banks and utilities
Cons
- Sensitive to interest rate changes, especially rate-reset structures
- Limited capital appreciation compared to equities
- Credit risk tied to corporate issuers
- Can be complex due to different preferred share structures
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
Best next ETF step
Keep comparing ETFs
These are good next reads if you want a broader shortlist, Canadian index exposure, or a faster way to compare funds.
ETF category
See more guides in this cluster
Stay inside the same ETF category and compare more funds with similar investor intent.
Popular guide
30 Best ETFs in Canada
A broad starting point if you want a shortlist across the main ETF categories.
Core ETF guide
Best TSX Index ETFs
A simple place to start if you want Canadian equity exposure through index funds.
Sector ETF guide
Best Canadian Oil ETFs
A useful next read if you want energy exposure without picking individual oil stocks.
Frequently Asked Questions
What is the best preferred shares ETF in Canada?
CPD.TO is one of the most widely used preferred shares ETFs in Canada due to its broad diversification and exposure to major issuers. Investors looking for rate-reset exposure may consider ZPR.TO, while HPR.TO offers an actively managed alternative.
Are preferred shares ETFs risky?
Preferred shares ETFs carry moderate risk. While they are generally less volatile than equities, they are sensitive to interest rates and credit conditions, which can impact both prices and income.
Are preferred shares ETFs good for a TFSA or RRSP?
Preferred shares ETFs can be held in both TFSAs and RRSPs. In a TFSA, income is tax-free, while in an RRSP, taxes are deferred. They are often used for income generation within a diversified portfolio.