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

US ETF ETFis Series Trust I - InfraCap REIT Preferred ETF - Summary

Profile:

The InfraCap REIT Preferred ETF (PFFR) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the InfraCap REIT Preferred Income & Growth Index. This index comprises preferred securities of U.S. REITs, focusing on those with a high probability of dividend growth and attractive current yields.

Objective:

The primary objective of PFFR is to provide investors with high current income and long-term capital appreciation through investment in REIT preferred securities.

Issuer:

ETF Series Solutions Trust I is the issuer of PFFR. This trust is a series of exchange-traded funds (ETFs) organized as a Delaware statutory trust. While ETF Series Solutions Trust I itself does not have an extensive track record, it is sponsored by VanEck, a reputable asset management firm with over 35 years of experience and over $80 billion in assets under management.

Market Share:

PFFR has a relatively small market share compared to other REIT ETFs.

Total Net Assets:

As of November 7, 2023, PFFR has approximately $51 million in total net assets.

Moat:

PFFR offers several competitive advantages:

• Unique focus: The ETF focuses exclusively on REIT preferred securities, providing exposure to a less commonly invested segment of the REIT market.
• High dividend yield: PFFR boasts a significantly higher dividend yield than the average REIT ETF.
• Experienced management: VanEck's expertise in managing REIT and income-oriented ETFs adds credibility to PFFR.

Financial Performance:

PFFR has a short track record, launched in February 2023. Since its inception, it has delivered a total return of 10.32% as of November 7, 2023.

Benchmark Comparison:

PFFR outperformed the InfraCap REIT Preferred Income & Growth Index by 0.13% since its inception.

Growth Trajectory:

The REIT preferred securities market is expected to continue growing, driven by factors such as rising interest rates and increasing demand for income-generating investments. This bodes well for PFFR's future growth potential.

Liquidity:

PFFR has an average daily trading volume of approximately 15,000 shares. The bid-ask spread is tight, indicating good liquidity.

Market Dynamics:

Factors impacting PFFR include:

• Interest rate environment: Rising interest rates can make REIT preferred securities less attractive to investors.
• REIT market performance: PFFR's performance is heavily dependent on the overall performance of the REIT market.
• Investor sentiment: Increased demand for income-generating investments can positively impact PFFR.

Competitors:

PFFR's main competitors include:

• iShares Preferred and Income Securities ETF (PFF)
• VanEck Merk Preferred Stock ETF (PSK)
• Nuveen Preferred & Income Opportunities Fund (JPS)

Expense Ratio:

PFFR has an expense ratio of 0.45%.

Investment Approach and Strategy:

• Strategy: PFFR passively tracks the InfraCap REIT Preferred Income & Growth Index.
• Composition: The ETF invests primarily in preferred securities of U.S. REITs.

Key Points:

• High current income potential
• Long-term capital appreciation potential
• Focus on REIT preferred securities
• Experienced management
• Good liquidity

Risks:

• Volatility: REIT preferred securities can be more volatile than other types of investments.
• Interest rate risk: Rising interest rates can negatively impact the value of REIT preferred securities.
• REIT market risk: PFFR's performance is directly tied to the performance of the REIT market.

Who Should Consider Investing:

PFFR is suitable for investors seeking:

• High current income
• Long-term capital appreciation
• Exposure to REIT preferred securities

Fundamental Rating Based on AI:

Based on an AI-driven analysis considering financial health, market position, and future prospects, PFFR receives a 7.5 out of 10 rating.

Justification:

• PFFR offers a unique exposure to REIT preferred securities, a niche market with growth potential.
• The ETF benefits from VanEck's expertise and enjoys good liquidity.
• However, the short track record and sensitivity to interest rate fluctuations lead to a slightly lower rating.

Resources and Disclaimers:

This analysis utilizes data from ETF.com, VanEck, and Morningstar. This information is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.