The S&P/TSX Preferred Share Index is designed to serve the investment community’s need for an investable benchmark representing the Canadian preferred stock market. The index is comprised of preferred stocks trading on the Toronto Stock Exchange that meet criteria relating to minimum size, liquidity, issuer rating, and exchange listing. The index does not have a fixed number of stocks.
Preferred stocks are a class of securities that combine the characteristics of debt and common stocks. While their expected volatility and returns fall between those of common stocks and bonds, their yields are typically higher than that of common stock, the bond market and the money market. With low correlations to common stocks and bonds, they serve as good diversification instruments.
Index Governance and Policy
This index is maintained by the S&P/TSX Index Committee, whose members include Standard & Poor’s economists and index analysts. It follows a set of published rules and policies that provide the transparent methodologies used to maintain the index.
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