Monthly Income is the
Objective of Many of Our Investors
There are a host of financial unknowns. However, one thing is certain; we all have bills to pay every month. So it’s nice to know that there is an Exchange Traded Fund (ETF) whose goal is delivering monthly income.
Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA) seeks to provide current income and long-term appreciation through a portfolio of over 100 preferred stocks of U.S. companies.
The 30-day SEC Yield as of 12/31/2020 is 9.17%.*
For Standardized Performance Disclosures, please click here.
Living in today’s low-interest-rate environment is a challenge for individuals seeking passive income.
The primary reason so many investors own our ETF is simple, monthly income.
*Source: Virtus Performance and Analytics.
SEC Yield is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30 day period by the current NAV at the end of the 30 day period.
How We Do It
Infrastructure Capital Advisors has partnered with Virtus ETF Solutions to launch the first exchange traded fund (NYSE: PFFA) that specifically targets dividend-yielding preferred securities and strives to enhance yield, performance and stability through an options strategy on approximately 20% of the portfolio.
*There is no assurance that the ETF's objective will achieved or maintainedSecurities Selection Process
We screen the preferred stock index and eliminate those stocks priced above their assessed value known as their net asset value.
We then select what we believe are the 100 strongest stocks based on our systematic valuation methodology. This comprises at least 80% of the portfolio. We then add a modest amount of leverage, typically 20%.
Added at anywhere from 0 to 20% of the portfolio is an options strategy. This is an income seeking strategy similarly employed by institutions, and is now available within this ETF structure. Here we write options on common stocks where preferred shares are available, but not meeting our selection criteria. This also acts as a hedge against interest rate movements.
Investment Guide
Please read our investment guide to learn how (NYSE: PFFA) seeks to pay monthly dividends in an easy to buy, easy to sell ETF.
Read Our GuideComplimentary, no registration required.
About (NYSE: PFFA)
We’ve designed (PFFA) to be composed of preferred stocks because they have historically tended to offer attractive yield potential, displaying both fixed income and equity characteristics, and lower equity beta than the broad US equity market.
In order to obtain a prospectus, please click here.
Since inception, (PFFA) has paid monthly dividends and is seeking to continue this trend. To view PFFA’s historic monthly dividend payouts, please click here.
Who We Are
Infrastructure Capital Advisors, LLC (ICA) is a registered investment advisor that manages exchange traded funds (ETFs) and a series of hedge funds. The firm was formed in 2012 and is based in New York City.
The firm seeks current income as its primary objective in most of its investing activities. Consequently, the firm focuses generally on companies that seek to generate and distribute streams of free cash flow. This approach is based on the belief that tangible assets that produce free cash-flow have intrinsic values that are unlikely to deteriorate over time.
Leadership TeamOnline Brokers
(NYSE: PFFA) can be found through your financial advisor or at most leading online brokers.
Trademarks and names are the property of their respective owners and do not imply any endorsement of Infrastructure Capital Advisors.