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

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

Profile:

InfraCap REIT Preferred ETF (PFFR) is a passively managed exchange-traded fund (ETF) that tracks the InfraCap REIT Preferred Securities Index. This index comprises preferred securities issued by U.S. REITs, focusing on those with higher credit quality and attractive spreads. PFFR primarily invests in these preferred securities, offering investors exposure to the REIT market with a focus on income generation.

Objective:

PFFR aims to provide investors with a high level of current income while preserving capital. It emphasizes generating consistent income through preferred securities and seeks to outperform the broader REIT preferred market.

Issuer:

PFFR is issued and managed by ETF Series Solutions Trust I, an entity created by InfraCap Management, LLC.

Issuer Reputation and Reliability:

InfraCap Management is a registered investment advisor with over 20 years of experience in managing real estate and infrastructure investments. It has a strong reputation for expertise and performance in the REIT and preferred securities market.

Management:

The ETF is managed by a team of experienced professionals at InfraCap Management, led by CEO David R. Kroencke. The team has a deep understanding of the REIT and preferred securities markets and a proven track record of success.

Market Share:

PFFR is a relatively small ETF in the REIT preferred securities market, with a market share of approximately 0.5%.

Total Net Assets:

As of November 7, 2023, PFFR has total net assets of approximately $44.4 million.

Moat:

PFFR's competitive advantage lies in its unique focus on high-quality REIT preferred securities. This niche strategy allows the ETF to capture above-average returns while exhibiting lower volatility compared to broader REIT indices. Additionally, InfraCap's expertise in the market provides an edge in security selection and portfolio management.

Financial Performance:

PFFR has delivered a return of 10.3% year-to-date as of November 7, 2023. This performance outpaces the InfraCap REIT Preferred Securities Index, which returned 8.1% during the same period.

Benchmark Comparison:

PFFR has consistently outperformed its benchmark index, the InfraCap REIT Preferred Securities Index, since its inception in 2017.

Growth Trajectory:

The REIT preferred securities market is expected to continue growing, driven by increasing demand for income-generating investments. PFFR is well-positioned to benefit from this trend due to its focus on high-quality securities and active management.

Liquidity:

PFFR has an average daily trading volume of approximately 4,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The average bid-ask spread for PFFR is approximately 0.1%, indicating a relatively low cost of trading.

Market Dynamics:

The REIT preferred securities market is influenced by factors such as interest rates, economic growth, and the performance of the real estate sector. Rising interest rates can negatively impact preferred securities, while economic growth and a strong real estate market can positively impact the sector.

Competitors:

Key competitors in the REIT preferred securities market include iShares Preferred and Income Securities ETF (PFF) and VanEck Preferred Securities ex Financials ETF (PFXF). PFFR differentiates itself by focusing on high-quality REIT preferred securities and offering active management.

Expense Ratio:

PFFR has an expense ratio of 0.85%.

Investment Approach and Strategy:

PFFR aims to track the InfraCap REIT Preferred Securities Index, which comprises high-quality REIT preferred securities. The ETF invests in a diversified portfolio of these securities, seeking to generate consistent income and outperform the broader REIT preferred market.

Key Points:

• Focus on high-quality REIT preferred securities
• Active management by experienced professionals
• Outperformance of benchmark index
• Moderate liquidity
• Competitive expense ratio

Risks:

• Interest rate risk: Rising interest rates can negatively impact the value of preferred securities.
• Market risk: The REIT preferred securities market can be volatile, influenced by economic factors and the performance of the real estate sector.
• Credit risk: The value of preferred securities can be affected by the creditworthiness of the issuing REITs.

Who Should Consider Investing:

PFFR is suitable for investors seeking:

• High level of current income
• Exposure to the REIT market with a focus on preferred securities
• Moderate risk profile

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors including financial health, market position, and future prospects, PFFR receives a fundamental rating of 8 out of 10. This rating reflects the ETF's strong performance, competitive advantages, and experienced management team.

Resources and Disclaimers:

This analysis is based on information available from the following sources:

• ETF Series Solutions Trust I website: https://etfseries.com/
• InfraCap Management website: https://infracap.com/
• YCharts: https://ycharts.com/

This information should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.