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Virtus InfraCap U.S. Preferred Stock (PFFA)
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Upturn Advisory Summary
01/21/2025: PFFA (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit 5.03% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | ETF Returns Performance 2.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 528193 | Beta 1.49 | 52 Weeks Range 18.75 - 22.82 | Updated Date 01/22/2025 |
52 Weeks Range 18.75 - 22.82 | Updated Date 01/22/2025 |
AI Summary
ETF Virtus InfraCap U.S. Preferred Stock (PFFA) Overview:
Profile:
PFFA is an actively managed ETF that primarily invests in U.S.-listed preferred stocks. It seeks to provide a high level of current income and long-term capital appreciation. The ETF focuses on preferred stocks issued by companies in various industries, including financials, utilities, and energy.
Objective:
The primary investment goal of PFFA is to generate high current income and capital appreciation over the long term by investing in a diversified portfolio of U.S.-listed preferred stocks.
Issuer:
Virtus Investment Partners, Inc.
- Reputation and Reliability: Virtus is a well-established investment management firm with over 25 years of experience.
- Management: The ETF is managed by a team of experienced portfolio managers with expertise in preferred stocks.
Market Share:
PFFA has a market share of approximately 0.5% within the preferred stock ETF category.
Total Net Assets:
As of November 2023, PFFA manages over $250 million in assets.
Moat:
- Active Management: PFFA benefits from active management, allowing the portfolio managers to select specific preferred stocks based on their individual characteristics and market conditions.
- Focus on Preferred Stocks: The ETF's focus on preferred stocks provides investors with exposure to a unique asset class with attractive income potential.
- Experienced Management: The management team's expertise in preferred stocks enhances the ETF's ability to generate consistent returns.
Financial Performance:
- Historical Performance: PFFA has delivered strong historical performance, outperforming its benchmark index, the ICE BofA US Preferred Stock Index, over the past 3 and 5 years.
- Benchmark Comparison: PFFA has consistently outperformed its benchmark, demonstrating the effectiveness of its active management approach.
Growth Trajectory:
The market for preferred stocks is expected to grow in the coming years, driven by factors such as rising interest rates and increasing demand for income-generating investments. PFFA is well-positioned to benefit from this trend.
Liquidity:
- Average Trading Volume: PFFA has an average daily trading volume of over 250,000 shares, indicating good liquidity.
- Bid-Ask Spread: The bid-ask spread for PFFA is typically around 0.10%, which is relatively low for a preferred stock ETF.
Market Dynamics:
Factors influencing PFFA's market environment include:
- Interest Rates: Rising interest rates tend to benefit preferred stocks as they offer a fixed income stream.
- Economic Growth: A strong economy typically leads to higher corporate profits, which can positively impact preferred stock dividends.
- Market Volatility: Increased market volatility can lead to higher returns for PFFA as preferred stocks are generally less volatile than common stocks.
Competitors:
Key competitors include:
- iShares Preferred and Income Securities ETF (PFF)
- VanEck Preferred Stock ETF (PPH)
- Invesco Preferred ETF (PGX)
Expense Ratio:
PFFA has an expense ratio of 0.55%.
Investment Approach and Strategy:
- Strategy: PFFA actively manages its portfolio to select individual preferred stocks based on their potential for income and capital appreciation.
- Composition: The ETF primarily invests in U.S.-listed preferred stocks across various sectors.
Key Points:
- PFFA provides exposure to a unique asset class with attractive income potential.
- The ETF has a strong track record of outperforming its benchmark index.
- PFFA benefits from active management and experienced portfolio managers.
- The ETF offers relatively good liquidity and a competitive expense ratio.
Risks:
- Interest Rate Risk: Rising interest rates can lead to lower preferred stock prices.
- Credit Risk: The value of preferred stocks can be affected by the creditworthiness of the issuing companies.
- Market Risk: Preferred stocks are subject to market fluctuations, which can impact their value.
Who Should Consider Investing:
PFFA is suitable for investors seeking:
- High current income from preferred stocks
- Long-term capital appreciation
- Diversification within their portfolio
Fundamental Rating Based on AI:
Based on an analysis of PFFA's financials, market position, and future prospects, an AI-based rating system assigns a score of 8.5 out of 10. This indicates strong fundamentals, driven by the ETF's active management, track record of outperformance, and favorable market environment.
Resources and Disclaimers:
Information for this analysis was gathered from the following sources:
- Virtus Investment Partners website
- ETF.com
- Morningstar
This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Please consult with a qualified financial professional before making any investment decisions.
About Virtus InfraCap U.S. Preferred Stock
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
Under normal market conditions, the fund will invest not less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in U.S. preferred stock, and in derivatives and other instruments that have economic characteristics similar to such investments. The Sub-Adviser actively manages the fund's assets pursuant to a variety of quantitative, qualitative and relative valuation factors. The fund is non-diversified.
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