Virtus InfraCap US Preferred Stock ETF

PFFA

Market cap $2.29B

It is so good to be an income investor. In times like these, when the future asset prices are very uncertain, I can simply enjoy the stability and predictability that come from my portfolio cash flows. This market environment has barely increased my stress level; instead, it has created a better playground to cherry-pick higher-yielding names.

Fixed-Income Foundation: Build your financial fortress with preferreds like Virtus InfraCap US Preferred Stock ETF and maturity ladders for predictable, recurring cash flow. Agency mREITs like Annaly Capital Management, Inc. are historically countercyclical, often raising dividends when the broader economy falters. Tangible Value: Focus on infrastructure and REITs that own essential assets and generate hard cash.

History shows high oil prices often trigger recessions and deflation, not sustainable core inflation. The Fed ignores energy spikes; they focus on Core PCE, which typically declines during oil shocks. By avoiding blind indexing, PFFA management targets overlooked preferreds for superior long-term total returns.

Retirement income portfolios should prioritize meaningful dividend yields to avoid principal drawdown. Predictable and frequent cash flows, ideally monthly, are essential for reliable retirement income. Stress-free investments are key to minimizing worry during adverse economic conditions and avoiding income cuts.

Virtus InfraCap US Preferred Stock ETF is an actively managed, leveraged ETF targeting preferred securities and outperforming its benchmark, PFF. PFFA offers a near 9.7% yield, but its distribution is variable and subject to cuts as interest rates decline. The fund's strategy involves rotating into discounted, higher-risk preferreds, including MLP and REIT issues, to capture outsized yields and capital gains.

Virtus InfraCap US Preferred Stock ETF offers a superior risk-reward profile and is rated Buy for its strong yield and outperformance. PFFA's sector diversification and active management, despite leverage, have driven a 48.83% three-year total return and a 9.27% TTM yield. First Trust Preferred Securities and Income ETF is rated Hold due to its 71% financials concentration, despite FPE's international diversification and solid management.

Two fundamentally strong investments now yield over 10%. Both of these 10%+ yielders have track records of outperformance and sustainable dividends. ARCC is trading at its deepest discount in years, and PFFA has managed to grow its payout for years despite being stuffed with fixed-income securities.

Inflation has significantly eroded portfolio purchasing power, especially for conservative investors avoiding high-growth stocks. Traditional yield producers like Realty Income have failed to outpace inflation, worsening real income outcomes. I prioritize seeking high-yield, recession-resistant investments to generate durable monthly income amidst volatility.

Social Security pays retirees $2,000 a month on average, and private tuitions are even lower than that.

A toolbox filled with specialty instruments isn't helpful if none of them work when you need them most. Our approach emphasizes durable, cash-flow-generating assets that work through rate shifts, recessions, and general volatility. We discuss our top picks, offering yields of up to 10%.