Virtus InfraCap US Preferred Stock ETF

PFFA

Market cap $2.11B

Diversify beyond labor: Transition from a single paycheck to an army of +9% yielding assets managed by experts. Buy PIMCO's elite credit expertise at a rare ~5% premium, well below its historical 5-year average. Outperform the preferred index through active management and strategic leverage that amplifies returns.

Virtus InfraCap U.S. Preferred Stock ETF (PFFA) offers a 9.4% yield through active management, leverage, and risk-focused portfolio construction. PFFA prioritizes income and capital appreciation by screening for high yield-to-call preferreds, emphasizing ex-financials, and utilizing derivatives and leverage up to 30%. Despite a high 2.48% expense ratio, PFFA's total return and dividend resilience outpace peers, justifying its cost and risk profile.

The year is 2026, and the market (and macro) environment seem to be exactly the opposite of what is required for stress-free income. For prudent income investors, considering taking some risk off the table might be a good idea. But in most cases it comes at the cost of reduced income potential.

Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is rated a Strong Buy for its resilient, high-yield income profile amid uncertain equity and rate environments. PFFA's active management and leverage have historically amplified returns and mitigated drawdowns, outperforming passive peers like PFF, especially outside crisis periods. Current macro conditions - higher-for-longer rates, tight credit, and elevated entry yields - favor mid- to high-single digit returns for preferreds, with PFFA targeting double digits.

Income investing emphasizes discipline and resilience against market unpredictability. We discuss our top picks for 2026, where you can invest $100,000 for a resilient income stream. Give yourself the gift of predictable income in the new year.

Avoid vague wealth goals; set specific, realistic targets for retirement. Portfolio value fluctuates wildly; rely on stable income generation instead. Don't sell shares to pay bills; replace income with dividends.

For the quarter, the Fund (PFFA) returned 7.97% on net asset value, while the Fund's benchmark, the S&P U.S. Preferred Stock Index, returned 3.97%. The Fund paid a monthly dividend of $0.17 per share for each month of the quarter. The Fund's relative performance was largely impacted by its overweight in real estate investment trust preferred stocks.

Virtus InfraCap U.S. Preferred Stock ETF is rated a Buy for income investors seeking high yield and potential capital appreciation. PFFA's active management, sector rotation favoring real estate, and modest leverage (20%) have driven outperformance versus passive preferred ETFs. The fund yields over 9%, with distributions well covered by income, and benefits from anticipated lower interest rates and a real estate recovery in 2026.

As retirees transition from accumulating wealth to living off it, the most challenging aspect can be moving from a steady paycheck to a fluctuating portfolio.

The odds for a serious correction are not low. In this context, high-yield investing might not sound as the smartest idea, especially for durable or retirement income portfolios. Fortunately, in markets everything is not black or white.