The Fed's 2026 Cutting Path Will Make or Break PFFA's 9.5% Yield
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.
PFFA's Juicy 9.5% Yield Will Help As We Head Toward A Recession
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.
PFFA: Holding Ground In A Higher For Longer World
Virtus InfraCap U.S. Preferred Stock ETF maintains a Strong Buy rating for a 3-year horizon, driven by high starting yields and resilient credit conditions. The short-term outlook needs closer monitoring, though. Recent macro shifts—persistent high rates and emerging credit concerns—narrow upside, making price stability more dependent on credit holding firm. PFFA's returns remain primarily distribution-led; elevated yields cushion downside, but rate and credit variables require closer monitoring for bigger new commitments.
The Swiss Army Knife Approach To Retirement Success
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%.
PFFA Vs. PFF: Why Active Management Is Crushing The 'Gold Standard'
PFFA is rated 'Buy' for 2026, leveraging active management and 20–30% leverage to deliver superior income and capital preservation. PFFA's 5-year total return of 53.31% far outpaces PFF at 13.31%. PFFA's portfolio is concentrated in REITs, energy, and infrastructure, positioning it to benefit from anticipated Fed rate cuts.
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.
