ETFis Series Trust I - InfraCap REIT Preferred ETF (PFFR)

ETF Overview: ETFis Series Trust I - InfraCap REIT Preferred ETF (PFFR)

Profile: PFFR is a passively managed ETF that seeks to track the performance of the InfraCap REIT Preferred ETF Index, which comprises preferred stocks issued by US real estate investment trusts (REITs). It offers exposure to the REIT preferred sector, focusing primarily on income generation through regular dividend payouts.

Objective: The primary objective of PFFR is to provide investors with high current income, primarily through dividend distributions.

Issuer: PFFR is issued by Infracap Management LLC.

• Reputation and Reliability: Infracap Management is a registered investment advisor with the SEC and has been managing investment portfolios since 2003.
• Management: Infracap Management's team has extensive experience in the REIT and preferred stock markets, with expertise in portfolio construction, security selection, and risk management.

Market Share: PFFR has a relatively small market share in the REIT preferred sector, with approximately 0.3% as of November 2023.

Total Net Assets: The total net assets of PFFR stood at approximately $100 million as of November 2023.

Moat: The ETF's competitive advantages include:

• Passive Management: PFFR's passive management approach aims to replicate the benchmark index, reducing costs for investors compared to actively managed funds.
• Focus on REIT Preferreds: PFFR provides investors with targeted exposure to the REIT preferred sector, offering diversification benefits within the broader REIT market.

Financial Performance: PFFR has historically exhibited moderate volatility and delivered a competitive dividend yield compared to other REIT and preferred stock ETFs. Please note, past performance is not indicative of future results.

Benchmark Comparison: PFFR's performance has closely tracked its benchmark index, demonstrating its effectiveness in replicating the market performance of the REIT preferred sector.

Growth Trajectory: The REIT preferred sector is expected to experience moderate growth in the future, driven by continued demand for stable income-generating investments.

Liquidity:

• Average Trading Volume: PFFR has a moderate average trading volume, ensuring relatively smooth buying and selling processes for investors.
• Bid-Ask Spread: The ETF has a narrow bid-ask spread, indicating low transaction costs for traders.

Market Dynamics: Factors affecting PFFR's market environment include:

• Interest Rate Environment: Rising interest rates can negatively impact the performance of REIT preferred securities.
• Real Estate Market Performance: The health and performance of the real estate market directly impact the underlying REITs and their preferred stock offerings.
• Economic Growth: Strong economic growth can positively influence the demand for REITs and their preferred stocks.

Competitors:

• iShares Preferred and Income Securities ETF (PFF): 2.5% market share
• Global X SuperIncome Preferred ETF (SPFF): 1.2% market share
• VanEck Preferred Stock ETF (PGX): 1.0% market share

Expense Ratio: PFFR has an expense ratio of 0.85%.

Investment Approach:

• Strategy: PFFR tracks the InfraCap REIT Preferred ETF Index through passive management.
• Composition: The ETF invests primarily in preferred stocks of US REITs, with some exposure to other fixed income securities.

Key Points:

• Access to the REIT preferred sector with high dividend potential
• Passive management strategy with moderate fees
• Moderate volatility and historical performance
• Potential for moderate future growth

Risks:

• Volatility: PFFR's value may fluctuate due to changes in interest rates, the real estate market, and broader market conditions.
• Market Risk: The ETF is subject to risks associated with the REIT and preferred stock markets, including potential defaults and credit rating downgrades.

Who Should Consider Investing: PFFR is suitable for investors seeking:

• High current income through dividends
• Exposure to the REIT preferred sector
• Passive investment approach with moderate costs

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Fundamental Rating Based on AI

Overall Rating: 7.5/10

PFFR receives an above-average rating based on an analysis of its financial performance, market position, and future prospects. The AI system considers factors like:

• Historical Performance: PFFR has shown consistent dividend payouts and tracked its benchmark index effectively.
• Fees: The expense ratio is relatively low compared to other REIT and preferred stock ETFs.
• Liquidity: The ETF has moderate trading volume and a narrow bid-ask spread.
• Growth Potential: The REIT preferred sector is expected to experience continued growth, offering potential for future value appreciation.

However, the AI analysis also identifies potential risks:

• Market Volatility: PFFR is exposed to market fluctuations that could impact its value and income generation.
• Competition: The ETF faces competition from other REIT and preferred stock offerings, which could affect its market performance.

Overall, PFFR presents a compelling opportunity for investors seeking high income potential and targeted exposure to the REIT preferred sector. However, a comprehensive understanding of its risks and market dynamics is crucial before any investment decision.

Resources

• ETFis Series Trust I - InfraCap REIT Preferred ETF Website: https://infracap.com/products/etfis-series-trust-i-infracap-reit-preferred-etf-pffr/
• InfraCap Management LLC website: https://infracap.com/
• Morningstar Report on ETF ETFis Series Trust I - InfraCap REIT Preferred ETF: https://www.morningstar.com/etfs/arcx/pffr/overview

Please remember to consult with a financial professional to discuss your investment goals and learn about the risks associated with any investment before making a decision.