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

Virtus InfraCap U.S. Preferred Stock ETF (NYSE ARCA: PFFA) is designed to focus on the U.S. preferred stock market, offering exposure to this often-overlooked segment of the fixed income universe. The fund is structured to invest at least 80% of its net assets in U.S. preferred stocks and related instruments, which includes derivatives that mimic the economic characteristics of these securities. This targeted approach allows the fund to tap into the unique attributes of preferred stocks, which typically offer higher yields than common equities but with lower credit risk compared to traditional bonds.

The Sub-Adviser employs an active management strategy, leveraging a combination of quantitative models, qualitative assessments, and relative valuation metrics to identify attractive opportunities. This dual approach helps the fund navigate the complexities of the preferred stock market, where issuer-specific factors, market conditions, and regulatory changes can significantly impact performance. The fund is non-diversified, meaning it can concentrate its holdings in a smaller number of issuers or sectors, which may heighten risk but also allows for more focused investment strategies.

With an AUM of $1.483 billion, PFFA is a sizeable player in the preferred stock ETF space, providing liquidity and scale that smaller funds may lack. The fund tracks a specific segment of the market, and its performance is closely tied to the underlying credit quality and yield dynamics of U.S. preferred stocks. Investors considering PFFA should evaluate their tolerance for the unique risks associated with preferred securities, including interest rate sensitivity and the potential for issuer-specific defaults.