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.**
**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.
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 Guide
About (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 Team