(PFFA) Virtus InfraCap U.S. - Ratings and Ratios

The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is a non-diversified exchange-traded fund designed to provide exposure to U.S. preferred stock. Under normal market conditions, the fund invests at least 80% of its net assets in U.S. preferred stock and related instruments, including derivatives and other securities with economic characteristics similar to preferred stock. The funds sub-adviser employs an active management strategy, leveraging quantitative, qualitative, and relative valuation factors to make investment decisions. Preferred stock typically offers fixed dividend payments and ranks higher than common stock but below bonds in the capital structure, providing a unique risk-return profile for income-focused investors.

As of the latest data, PFFA has an average 20-day volume of 709,800 shares, indicating moderate liquidity. The funds last price was $20.89, with key moving averages showing a SMA 20 of $20.10, SMA 50 of $20.88, and SMA 200 of $21.13. The Average True Range (ATR) of 0.35 reflects relatively low price volatility. With assets under management (AUM) of $1.364 billion, PFFA is a sizeable player in the preferred stock ETF category.

3-Month Forecast: Technical Outlook: - Price action is expected to remain range-bound between $20.50 and $21.50, supported by the SMA 50 and SMA 200 converging near $20.88 and $21.13, respectively. - The ATR of 0.35 suggests average daily price fluctuations of $0.35, translating to a 3-month ATR-based range of $5.25. This implies potential sideways movement with limited breakout potential. - If the SMA 20 ($20.10) acts as support, the fund may test resistance near $21.30. A breach below $20.10 could signal a deeper correction. Fundamental Outlook: - Preferred stock valuations are likely to remain stable, supported by fixed income characteristics and relatively low interest rate sensitivity compared to longer-duration bonds. - The funds AUM of $1.364 billion indicates a well-established product with consistent investor demand, which should support liquidity and market efficiency. - Macro conditions, including interest rate trends and credit market stability, will remain key drivers of performance.