PFFA: Giving Credit Where Credit Is Due
The Virtus InfraCap U.S. Preferred Stock ETF offers a diversified preferred securities portfolio with a 9.48% TTM dividend yield and $2.16 billion AUM. PFFA's holdings span finance (33%), mortgage REITs (20%), and real estate (19%), with 194 securities, including baby bonds, preferreds, and convertibles. Nearly half of PFFA's portfolio is fixed-rate preferreds, with yields to worst around 8.11% for those trading below par and 7.64% above par.
Unpredictable Markets? Make Your Income Predictable
Getting annoyed at unpleasant events is counterproductive; preparing for them helps. Income investors are better prepared to handle any economic conditions or financial obligations from a position of strength. We discuss our top monthly payers, with yields of up to 9.5%.
Retirees Are Collecting 9.5% Monthly From An Overlooked Preferred Stock Fund
The Virtus InfraCap U.S. Preferred Stock ETF ( NYSEARCA:PFFA ) delivers a 9.5% yield, but many retirees are missing it.
PFFA: This 9%+ Yield Gem Just Proved That It Is For Retirees
PFFA has delivered consistent dividend growth for six consecutive years, recently increasing its monthly dividend despite lower base rates. Currently, the offered yield stands at ~9.3%, which is very high in relation to the preferred share risk (i.e., conservative exposures). In the article, I detail how the lower base rate environment and the defense that comes from preferred shares position PFFA as one of the most attractive yield picks out there.
PFFA: Preferred Equity Exhibits Superior Performance And Yield Going Into 2026
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.
PFFA As An Income Allocator: Learning From Preferreds Across Cycles
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.
Virtus InfraCap U.S. Preferred Stock ETF Q2 2025 Commentary
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.
PFFA: Consider This Actively Managed Preferred Stock ETF
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.
Wake Up And Smell The Cash Flow
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.
One Of The Best 9%+ Yields I've Ever Seen For Retirees: PFFA
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.
PFFA: No Opinions, Just Data
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.
PFFA: The Active Preferred ETF Edge
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.
