Virtus InfraCap US Preferred Stock ETF

PFFA

Market cap $1.92B

All investing involves risk; avoid trying to eliminate it entirely. PFFA targets interest rate risk for a 9.5% preferred yield. RVT targets small-cap companies, a segment often ignored.

PFFA is poised to outperform SPY as the macro environment shifts toward rate cuts and a soft-landing recovery—a 180-degree change from conditions that previously justified a "strong sell." Labor-market weakness persists, reducing the risk of a wage-price spiral and giving the Fed room for further cuts. Consumer demand remains resilient, with broader data showing recovery from tariff-related distortions despite noisy retail sales prints.

At a time when the market trades near all-time highs and macro uncertainty soars, it can be scary for retirees looking to invest to fund their golden years. Virtus InfraCap U.S. Preferred Stock ETF offers retirees a near 10% yield with monthly distributions and a track record of dividend growth. I share why PFFA offers retirees one of the best near 10% yields I have ever seen.

Most 10% yielding portfolios inevitably crash and burn. However, there is a path to achieving a potentially sustainable 10% yielding portfolio. I share how it possibly can be done.

The Virtus InfraCap U.S. Preferred Stock ETF offers a high current yield by investing in a diversified portfolio of preferred and hybrid securities. PFFA's portfolio is heavily weighted toward lower-quality issuers, with an average B+ credit rating and significant exposure to financials and speculative companies. The fund's attractive ~8% yield is offset by higher credit event risk, aggressive active management, and the use of leverage, increasing volatility.

High-yielding investments can meaningfully help your passive income stream for an early retirement. However, it is important to be highly selective to avoid buying dividend traps. I share three of the very best 9%+ yielding investment opportunities for those looking to retire on passive income.

Preferred stock ETFs are often passively managed. But the preferred securities market presents a unique mix of structural quirks that can quickly expose the shortcomings of index-based investing. Instead of buying the entire market, PFFA screens out negative yield-to-call positions, tactically adjusts its fixed-versus-floating rate exposure, and diversifies beyond financials. PFFA generally employs between 20% and 30% leverage to enhance its ability to generate income, and deploys active income strategies across a diversified basket of high-yielding preferred stocks.

Some believe that interest rates are going to drift down and we'll have a soft landing. History suggests that a drastic fall is far more likely. These two investments should benefit, while others struggle.

A simple five-fund portfolio for high yield, growth, and diversification. Earn 7–9% income while still beating inflation through dividend growth. Here's how to build a simple retirement portfolio for lasting income.

Virtus InfraCap U.S. Preferred Stock ETF offers high income and diversification through U.S. preferred securities, with a current yield of 9.47%. PFFA outperforms the S&P U.S. Preferred Stock Index but slightly underperforms the S&P 500, especially during recent market rallies driven by AI speculation. The ETF's diversification across sectors, including financials, real estate, and utilities, helps mitigate risk, especially in uncertain economic times.