Virtus InfraCap US Preferred Stock ETF remains a buy, especially as a defensive play ahead of a potential recession. PFFA offers a 10% yield, leveraging preferred stock's seniority and diversification, though recent performance has lagged due to rising rates. The ETF is heavily weighted toward financials but maintains broad sector diversification, limiting single-issuer risk.
Virtus InfraCap US Preferred Stock ETF offers a 10% yield, targeting income-focused investors seeking diversification in preferred securities. PFFA's distributions are supported by both net investment income and net realized gains, but reliance on gains introduces NAV and sustainability risks. The fund is heavily concentrated in financials and real estate, making it sensitive to interest rate movements and sector-specific risks.
Preferred stock ETFs sit in an awkward corner of the income market: too rate-sensitive to feel like true fixed income, too subordinated to trade like common equity.
The Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) pays $0.1725 per share every month, which works out to roughly a 9.9% forward yield at a recent share price near $21.
If you own Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) for the income, the question that matters is whether that fat distribution will still be there next year.
Preferred shares offer high-priority contractual distributions like debt while capturing juicy equity yields backed by strict common dividend suspension rules. Unlike standalone companies or closed-end funds, PFFA's ETF structure ensures you can exit at or near NAV at any moment. Outperforming the Index: Active capital allocations and a disciplined overlay of modest leverage have allowed PFFA to aggressively crush passive index peers.
Michael Douglas' Oscar winning performance as Gordon Gekko in Wall Street (1988) had many of the best lines.
Virtus InfraCap U.S. Preferred Stock ETF offers a forward yield of 9.69%, significantly outpacing the 12-month Treasury bill's 3.91%. PFFA's active management, use of leverage, and options overlay drive consistent outperformance versus passive preferred ETFs and its benchmark index. The fund's monthly distributions have increased six times since 2020, with capital preservation and reliable income prioritized over capital appreciation.
The headline number on Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) is a distribution yield at 9.67%, which looks generous against the unleveraged iShares Preferred and Income Securities ETF (NASDAQ:PFF) at 5.6%.
With money market funds and short Treasury bills hovering near 4.6%, the bar for owning anything with equity-like risk has gone up.
The Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA) sits at $21.62 heading into the back half of 2026, paying a 9.5% yield that has drawn income investors looking for something between bond coupons and common stock dividends.
Virtus InfraCap US Preferred Stock ETF remains a 'buy' for its 9.5% yield and defensive structure amid recession concerns. PFFA's diversified preferred stock holdings limit single-issuer risk, with the top holding at just 2.47% and top 10 at 22.45%. Financial sector exposure (34.09%) is a risk in downturns, but preferreds offer seniority and more stable distributions versus common equity.