Bringing you live news and features since 2006 

Virtus ETF Solutions and InfraCap launch Preferred Stock ETF


Virtus ETF Solutions has partnered with Infrastructure Capital Advisors (InfraCap) to launch the Virtus InfraCap US Preferred Stock ETF (PFFA) on the NYSE Arca.

The fund seeks current income and capital appreciation in a sector that may be less understood by investors, said Jay Hatfield, founder and chief executive officer of InfraCap and co-portfolio manager. The fund will invest in a portfolio of more than 100 preferred securities issued by US companies with market capitalizations of more than USD100 million. With a focus on income, the fund offers the potential for attractive yields, while pursuing compelling total return results.
Portfolio managers rely on a variety of quantitative, qualitative and relative valuation factors to select securities and weightings for the fund. As part of their investment process, they evaluate companies for their competitive position, potential to earn high returns on capital, stability and reliability of profits, potential to generate cash in excess of growth needs, and access to capital. Modest leverage is used to seek enhanced portfolio beta and options strategies are used to seek enhanced current income.
“We are excited to offer PFFA because the nuances of preferred stock investing demands active management, which we can provide in an ETF form,” Hatfield says. “Investors can benefit from active management in this sector, as the call features of preferred stock often require portfolio managers to avoid capital losses on mandatory calls.”
The new ETF joins two other InfraCap products on the Virtus ETF platform, the InfraCap MLP ETF (AMZA), an actively managed MLP offering, and InfraCap Preferred REIT ETF (PFFR).
“InfraCap’s management style lends itself well to asset-like preferred stocks, and we believe investors seeking an enhanced income experience will find PFFA attractive,” says William Smalley, executive managing director of Virtus ETF Solutions.”We are also pleased to have the opportunity to extend our longstanding partnership with InfraCap with the launch of this third ETF on the Virtus ETF Solutions platform.”

Latest News

Invesco’s Paul Syms, Head of EMEA ETF Fixed Income and Commodity Product Management, has commented on the gold price, saying:..
Everysk, a provider of customisable, no-code, low-code intelligent automation solutions, has been chosen as a strategic partner of Dynamic Beta..
Rize ETF has listed its new Rize Circular Economy Enablers UCITS ETF (CYCL) on the London Stock Exchange (LSE) and..
DWS has launched a new Xtrackers ETF based on European Nordic equity markets, aligned with the goals of the 2015..

Related Articles

Stephanie Miller Pierce, BNY Mellon
The three-year anniversary of BNY Mellon Investment Management’s launch of ETFs was marked by the quarter one growth of 172...
South Korea Flag
The overall trend in retail subscriptions to mutual funds in Korea is shifting gradually toward ETFs, as exchange-traded offerings have...
“The beauty of ETFs is that you can have effectively a rules-based strategy at low cost” says Laurent Kssis, head...
Henry Timmons, RBA
Henry Timmons, director of ETFs and Michael Contopoulos, director of fixed income at Richard Bernstein Advisors are on a mission...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by