The Canadian preferred share market moved sharply higher in December as large scale buying of preferred share Exchange Traded Funds (ETFs) pushed the prices of individual issues upward. A lack of new issues contributed to the market’s strength. As well, in contrast with recent years, there was relatively little tax-loss selling in December. Rate reset issues performed particularly well as a result of direct investor interest and also due to hedging of structured products. The S&P/TSX Preferred Share Index returned +3.59% in the month.