RM: What would be the benefit in investing in a preferred share ETF over just simply holding a preferred share?
DG: I think there’s a number of advantages. First of all, because there’s a number of different positions of a number of different companies, you have diversification. So by buying one stock, you’re actually buying a number of little tiny pieces of a number of different preferred shares. So you’re getting that wide spread number of preferred shares in a simply easy packaged way, just by buying one stock, just buying that one ETF.
RM: This would also eliminate the element of risk a little bit?
DG: Absolutely, because you’re buying a diverse group of companies. You know if one company runs into trouble, you’re owning a bunch of different companies. Whereas when you buy preferred shares on an individual basis, if that specific company runs into trouble you’re going to get really directly hurt. So I think it offers investors a great opportunity to easily buy one stock, knowing the underlying is buying a variety of different companies that are all preferred shares.