PFFA: Out Of The Pan, Into The Fire
What are the reasons for PFFA's under-performance since inception failing to recover post-COVID despite broader market rallies? Placing PFFA's financial statements under a microscope raises questions about its income-generating promise. The fund's heavy exposure to junk-grade financials and REITs, coupled with leverage, increases the possibility of further degradation in the coming years.
PFFA: This 10%+ Yielding Fund Is An Incredible Deal Right Now
Virtus InfraCap U.S. Preferred Stock ETF's quality holdings and stable distributions make it a strong buy, especially given the recent market dip. The fund's construction involves investing in high-quality U.S. preferred stocks, offering solid income with low volatility. PFFA has maintained consistent dividends, even during market turmoil, and uses conservative leverage to boost income.
PFFA: The Dividend Is In Double Digits Again, But Is It Safe?
PFFA has declined by ~10% since the start of this year. While the drop is not as big as for the S&P 500, it is still quite notable given the underlying fundamentals. Given this decline, I think it would be fair to say that many income investors have started to question PFFA's dividend sustainability.
Buy The Dip With Me, 10.2% Yield PFFA
Preferred equities have dipped lately as the Fed delayed rate cuts, creating a persistent opportunity. Earn 10% without the risk of common equity cuts. Your portfolio needs a layer of stable income generation; PFFA is a key pick.
PFFA: An Entry Strategy To Capture 9% Returns While Balancing Capital Risk
Active ETFs often face criticism for high fees, but Virtus InfraCap U.S. Preferred Stock ETF (PFFA), with an AUM of $1.50B, stands out despite its 2.52% annual expense ratio. Investing in preferred stocks offers strong returns—currently above 9%—but comes with unpredictable capital fluctuations due to volatile interest rate expectations. An active approach could better manage depreciation risk and Yield to Call (YTC), as demonstrated by performance.
PFFA: The Junk Every One Likes For No Real Reason
PFFA's portfolio is filled with low-quality, high-yield preferred stocks, with only 5% investment-grade securities, exposing investors to significant credit risk. Investors may not be getting the full picture about the fund's actual risk-adjusted performance due to its use of leverage and low credit ratings. PFFA's active management strategy appears flawed. It holds numerous losing positions and fails to capitalize on market inefficiencies, contradicting the market perception of generating alpha.
PFFA: Dividend And NAV To Improve (Rating Upgrade)
Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is an actively managed income ETF focusing on preferred stocks. I initially declined to rate PFFA Buy due to limited upside and leverage risks but believe the general picture improved. Rate cuts have since been inaugurated by the Fed, which should help PFFA's income and NAV going forward.
Stock Market Worries? Buy Preferred Stocks For Big Income: PFFA
We all have preferences, but many miss that companies have preferences too. I collect income from preference securities issued by major companies. I share my preferred way to collect income from their preferences.
PFFA: Best Among Its Preferred Share Peers
Since my last 'Buy' update, PFFA has underperformed the S&P 500 but trounced other preferred share ETFs' performance on a total shareholder return basis. A dovish rates environment is more favorable for equities over the preferred share class. But PFFA's leverage, active management, and fixed-to-floating preferred share mix may help it outperform its peers. PFFA is trading close to NAV fair value and its relative technicals seem to be in a limbo state with neither a strong show by the bulls nor the bears.
PFFA: The Right Moment To Lock In This 9% Monthly Dividend
Over the past couple of months, PFFA has not performed well. The unfavorable interest rate dynamics have introduced a pressure on PFFA's preferred share real estate, infrastructure and fixed-to-floating rate holdings. Yet, in the article I make an argument on why this could be considered an interesting opportunity for high and defensive income investors to lock in ~9.1% dividend.
Why 9.2%-Yielding PFFA Beats The Competition
PFFA offers a juicy 9.2% yield. However, that is not all it has going for it. We show why PFFA beats its competition.
Virtus Unveils New Active Private Credit CLO ETF
On Tuesday, Virtus Investment Partners launched its latest active ETF, the Virtus Seix AAA Private Credit CLO ETF (PCLO). The actively managed fund has a low net expense ratio of 0.29%.
