Canadian ETF issuer Horizons has partnered with German index provider Solactive for the launch of a preferred share ETF in Toronto.

The Horizons Laddered Canadian Preferred Share Index ETF (HLPR) is comprised of 170 Canadian preferred share securities. Solactive says a preferred share is regarded as a hybrid of equity and debt securities.

Preferred shares enable investors to gain exposure to price appreciation and depreciation like common stocks as well as paying a fixed or adjustable dividend over a set term. These dividends are prioritised over ordinary shares which is why they are given the name "preferred".

Steve Hawkins, President and CEO at Horizons ETFs, said in a statement: "HLPR's launch marks the seventh Total Return Index (TRI) ETF that we've introduced with the support of Solactive AG. With the addition of HLPR to our TRI line - up, investors now have a more tax efficient option for accessing a diverse portfolio of Canadian preferred share securities through a single trade."