Global X Funds has launched the Global X Canada Preferred ETF, an exchange-traded fund that targets Canadian companies that issue preferred stock. The fund tracks the Solactive Canada Preferred Stock Index.

Global X noted that the ETF might appeal to those investors looking for income, since preferred stock combines the characteristics of bonds and equities, paying stable dividends with more frequency than common shares. Since preferred shares have the potential to increase in value, they offer additional income growth potential. Finally, preferred shareholders have priority over common shareholders with regards to company earnings and assets.

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