Many of Our Investors Are Seeking Consistent Monthly Income.
The world presents a host of financial unknowns. However, one thing is certain: we all have bills to pay every month. This Exchange-Traded Fund (ETF) may be the answer: it aims to deliver reliable monthly income.
Virtus InfraCap U.S. Preferred Stock ETF (NYSE Arca: 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 Unsubsidized SEC Yield as of 12/31/21 is 6.16%.*
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown.
Living in today’s low interest rate environment is a challenge for individuals seeking passive income.
*Source: Virtus Performance and Analytics.
Past performance is not indicative of future results.
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 one of the first* exchange-traded funds (NYSE Arca: 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.**
*Bloomberg, 12/31/21
**There is no assurance that the ETF’s objective will be achieved or maintained.
Security Selection Process
We screen the preferred stock index and eliminate those stocks priced above an assessed value known as their net asset value.
Then, based on our systematic valuation methodology, we select what we believe are the 100 strongest stocks. This comprises at least 80% of the portfolio. We then add a modest amount of leverage—typically 20%.
We then add an option strategy – anywhere from 0 to 20% of the portfolio. This is an income-seeking strategy similarly employed by large financial institutions, and is now available within the ETF structure. Here, we write options on common stocks where preferred shares are available but don’t meet our selection criteria. This also acts as a hedge against interest rate movements.
*When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
Investment Guide
Please read our investment guide for more details about how (NYSE Arca: AMZA) seeks to pay monthly distributions in an easy-to-buy, easy-to-sell ETF.
Read Our GuideAbout (NYSE Arca: PFFA)
We’ve structured (NYSE Arca: PFFA) to be composed of preferred stocks because they have historically displayed attractive yield potential, both fixed income and equity characteristics, and lower equity beta than the broad U.S. equity market.
To obtain a prospectus, please click here.
Since its inception, PFFA has paid monthly dividends and seeks 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 of most of its investing activities. Consequently, we generally focus on companies that generate and distribute substantial 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 TeamLeadership Team
Jay D. Hatfield
Founder, CEO, and Portfolio Manager
Mr. Hatfield has almost three decades of experience in the securities and investment industries. At ICA, he is the portfolio manager of InfraCap MLP ETF (NYSE: AMZA), InfraCap REIT Preferred ETF (NYSE: PFFR) and a series of hedge funds. He leads the investment team and directs the company’s business development.
During his career, Mr. Hatfield has gained a broad perspective on the U.S. financial markets with years as an investment banker, a research director and portfolio manager and as a co-founder of a NYSE-listed company. Mr. Hatfield’s career is focused on companies that own real or hard assets, like energy, infrastructure and real estate.
Prior to forming ICA, he partnered with senior energy industry executives to acquire several midstream MLPs. These companies were merged to form a company now known as NGL Energy Partners, LP (NYSE: NGL). NGL was an IPO in May 2011. He is a general partner of the publicly-traded company.
In the years prior to forming NGL, Mr. Hatfield was a portfolio manager at SAC Capital (now Point72 Asset Management), running a portfolio focused on income securities. He joined SAC from Zimmer Lucas Partners, a hedge fund focused on energy and utility sectors, where he was head of research. Earlier in his career, he was the head of an investment banking unit at CIBC/Oppenheimer and a Principal in an investment banking unit at Morgan Stanley & Co. He began his career as a CPA at Ernst & Young. He holds an MBA from the Wharton School at the University of Pennsylvania and a BS from the University of California at Davis.
Edward F. Ryan
Founder, CFO, and COO
Mr. Ryan has more than thirty years of experience in the investment management business. During the majority of that time, he was an analyst and portfolio manager. At ICA, he is involved in all aspects of the company’s business, including investments, finance, compliance and marketing. He plays a key role in structuring and launching new funds.
During his career, Mr. Ryan helped launch several asset management businesses. Prior to forming ICA, he was the founder and managing partner of Mansion Partners, LP, a private investment partnership focused on value stocks and special situations. He was also engaged in venture capital projects in the financial technology sector.
Early in his career, he was a research analyst/portfolio manager at Ansbacher (Dublin) Asset Management, Ltd. There he was active in global equity and fixed income markets. He began his career at J. Rothschild Capital Management Corp., a unit of RIT Capital Partners, where he was a member of the team that launched the U.S. operation. There he evaluated U.S. investment opportunities and managed corporate financial functions. He holds an MBA from Columbia University Graduate School of Business and a BA from Saint John’s University (MN).
Online Brokers
(NYSE Arca: PFFA) can be found through your financial advisor or at most leading online brokers.
