Mulvihill Capital Management: Rethinking Income with Split Preferred Share ETFs
In a new BTV Spotlight, John Mulvihill explains how split preferred share ETFs offer a stable, income-focused solution in volatile markets.
Why Mulvihill’s structured products are gaining traction among Canadians seeking yield and capital stability
Cindy Broad sits down with John Mulvihill, President and CEO of Mulvihill Capital Management, to explore a timely topic: innovative income strategies in uncertain markets. With a long-standing reputation for delivering structured investment solutions, Mulvihill shines a light on one of its most talked-about offerings — the Split Preferred Share ETF.
Mulvihill explains that split preferred shares have been gaining attention because of their built-in protection. Each structure includes a preferred and a class A share, but before any loss impacts the preferred side, the class A share must be completely wiped out — offering a significant buffer. This setup has led to strong interest from investors seeking both safety and yield.
As markets remain volatile and traditional fixed income underperforms in a rising rate environment, many investors are turning to lower correlation assets like split preferred shares. Mulvihill points out that these ETFs offer a steady net asset value with very low volatility, making them especially attractive. The added bonus? An uptick in yield compared to other income-producing assets, helping reduce the opportunity cost of staying conservative in a rising market.
With Canadians increasingly looking for smarter ways to park their cash, split preferred shares offer a compelling alternative — combining downside protection, income, and peace of mind.
