Q: Hi, Pat. My question relates to the Horizons Active Preferred Share ETF. Compared to holding the preferred shares of individual companies, does an ETF like this provide any advantages? Is this the best one to buy if you want to buy such an ETF? Thanks!

A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.

The underlying credit quality of preferred share issuers can be a negative factor in some… Read More

Q: Pat, here and there I’ve read about “activist investors” involved with certain companies and wonder how beneficial, if at all, they are to smaller shareholders. They strike me as likely focused on shorter-term gains for that company in order to reflect positively on their own bottom lines. What do you think? Thanks and cheers!

A: In general, activist investors are individuals or groups buying a company’s shares with the intention of boosting shareholder value and ultimately pushing up its share price.

Activist investing has surged in the past decade, led by a relatively small but powerful group of hedge funds… Read More