Virtus InfraCap U S Preferred Stock ETF Overview and Analysis

The Virtus InfraCap U S Preferred Stock ETF is a unique investment opportunity that focuses on investing in preferred stocks of U.S. companies. It's designed to provide a high level of income and relatively low volatility.

The fund is actively managed by the investment team at Virtus Investment Partners, who have a deep understanding of the preferred stock market. They use a combination of quantitative and qualitative analysis to select the best stocks for the fund.

The Virtus InfraCap U S Preferred Stock ETF has a number of key features that make it an attractive option for investors. It has a low expense ratio of 0.74%, which is lower than many other ETFs in the preferred stock space.

The Virtus InfraCap U.S. Preferred Stock ETF offers several key benefits and features that make it an attractive option for income investors.

One of the standout features is its focus on preferred stocks, which have historically provided a non-traditional source and pattern of returns within an income portfolio.

InfraCap's experienced team actively manages the ETF to minimize exposure to callable preferreds trading at a negative yield-to-call.

This approach helps to maximize returns while minimizing risk.

The ETF opportunistically employs modest leverage to enhance current income, providing an additional source of returns.

Here are the key features of the Virtus InfraCap U.S. Preferred Stock ETF at a glance:

Keep in mind that this investment is not insured by FDIC/NCUSIF or any federal government agency, and it's not a deposit, which means it may lose value.

The Virtus InfraCap U.S. Preferred Stock ETF is an investment vehicle that's been around since May 15, 2018.

This fund is part of the Virtus ETFs family, which suggests a focus on providing diverse investment options to its clients. I've found that having a range of investment choices can be really helpful in managing risk and achieving long-term goals.

Here are some key details about the fund:

The Virtus InfraCap U.S. Preferred Stock ETF has a legal name that's straightforward and to the point.

The fund family name is Virtus ETFs, which is a clear indication of its affiliation with the Virtus company.

The fund was launched on May 15, 2018, marking the beginning of its journey in the market.

There are 24,250,004 shares outstanding, which is a significant number that reflects the fund's popularity.

The share class is listed as N/A, which means it doesn't have any specific classification.

The currency used for the fund is USD, which is the standard currency for US-based funds.

The fund is domiciled in the United States, which is a key factor in its operations and regulations.

The manager of the fund is Jay Hatfield, who is responsible for its overall strategy and direction.

The Virtus InfraCap US Preferred Stock ETF has a portfolio turnover rate of 62%, which is higher than the average portfolio turnover of 37% for the Preferred Stock category. This higher turnover can result in higher expenses and lower after-tax returns.

The ETF's performance has been mixed over the years. In 2022, it had a return of -20.9%, which was better than the category return low of -26.0%. On the other hand, in 2020, it had a return of -7.9%, which was still better than the category return low of -19.2%.

Here's a summary of the ETF's performance over the past few years:

In January 2025, the ETF returned 0.7%, which earned it a grade of B, as the Preferred Stock category had an average return of 0.7%.

Total Return Ranking is a key metric to evaluate the performance of an investment. The ranking is based on the total return, which includes both income and capital gains.

In the trailing period, the PFFA Return was 16.2% for the 1-year period, which ranked 1.35% in the category. This is a significant return, especially considering the Category Return Low was 2.4% during the same period.

The ranking in the category is calculated as a percentage, with lower rankings indicating better performance. For instance, a ranking of 1.35% means the PFFA Return was among the top 1.35% of the category.

Here's a breakdown of the Total Return Ranking for the trailing period:

The calendar period shows a significant variation in the PFFA Return. For instance, the PFFA Return was 26.5% in 2023, but -20.9% in 2022. This highlights the importance of evaluating performance over different time periods.

A notable observation is that the ranking in the category can change significantly from one period to another. For example, in 2022, the PFFA Return ranked 81.43% in the category, indicating a relatively poor performance.

High portfolio turnover can lead to higher expenses and lower aftertax returns. Virtus InfraCap US Preferred Stock ETF has a portfolio turnover rate of 62%, significantly higher than the average portfolio turnover of 37% for the Preferred Stock category.

The ETF's high turnover rate means it holds its assets for a relatively short period of 0.0 years. This contrasts with other ETFs in the category that likely hold their assets for a longer duration.

In January 2025, Virtus InfraCap US Preferred Stock ETF returned 0.7%, earning it a grade of B. This is the same return as the average return for the Preferred Stock category, indicating that the ETF performed in line with its peers.

The letter grades of A, B, C, D, and F are based on relative rankings within the investment category, with A indicating the highest 20% return compared to all ETFs in that category.

The Virtus InfraCap U.S. Preferred Stock ETF is designed to track the performance of the S&P Preferred Stock Index, which is a market-value weighted index of preferred stocks issued by U.S. companies.

This index includes preferred stocks from a range of industries, including financials, industrials, and utilities. The ETF's investment objective is to provide a high level of income through investments in preferred stocks, while also offering the potential for long-term capital appreciation.

The fund's portfolio is comprised of a diversified mix of preferred stocks, with no individual holding exceeding 4% of the fund's net assets. This diversification helps to minimize risk and maximize returns.

The sector breakdown is a crucial aspect of understanding the stock market. Utilities dominate the sector breakdown with a weighting of 100.00%.

Looking at the Utilities sector, we can see that it has a return range of 0.00% to 100.00%. This suggests that Utilities have had a significant impact on the market.

The Utilities sector also boasts a PFFA % Rank of 18.52%, indicating its importance in the market. On the other hand, the Technology sector has a weighting of 0.00% and a PFFA % Rank of 88.89%.

Some sectors, like Technology and Real Estate, have a weighting of 0.00%, suggesting they have little to no impact on the market at this time. However, they still have a PFFA % Rank that indicates their potential.

Here's a breakdown of the sector weights and PFFA % Ranks:

The geographic breakdown of a particular stock is an interesting aspect to consider. The US has a weighting of 1.49% in this stock.

Breaking it down further, we can see that the US region has a return range of 0.00% to 27.85%. This is a significant variation, and it's worth exploring what factors contribute to this range.

The Non US region has a weighting of 0.00%, which is a stark contrast to the US. This means that the Non US region does not contribute to the overall stock's performance.

Here's a summary of the geographic breakdown:

Let's take a closer look at the dividend yield of PFFA and how it stacks up against its category.

PFFA's dividend yield is a respectable 9.23%.

The category low and high for dividend yield are 0.00% and 9.59% respectively.

Here's a breakdown of the dividend yield comparison:

PFFA's dividend yield is ranked 1.33% in its category, which is a relatively strong position.

Let's break down the Net Income Ratio and see how it compares to the rest of the industry.

The Net Income Ratio for PFFA is a respectable 4.93%. This is a key metric that helps us understand how well a company is managing its finances.

PFFA's Net Income Ratio is significantly higher than the Category Low of 0.88%. This suggests that PFFA is doing a better job of generating net income compared to its peers in the same category.

In fact, PFFA's Net Income Ratio is even higher than the Category High of 7.54%. This is a testament to PFFA's strong financial management and ability to generate net income.

Here's a quick comparison of the Net Income Ratio for PFFA and its categories:

PFFA's Net Income Ratio ranks 23.94% in its category, which is a notable achievement. This suggests that PFFA is doing a better job of managing its finances compared to its peers in the same category.

The Virtus InfraCap US Preferred Stock ETF comes with a relatively high expense ratio of 2.52%, which is significantly higher than the category average of 0.62%.

This high expense ratio can eat into your returns, so it's essential to consider it when evaluating the fund's overall performance.

The fund has a portfolio turnover rate of 62%, which is higher than the category average of 37%. This means the fund's holdings are changing more frequently, which can lead to higher trading costs and lower after-tax returns.

Here's a breakdown of the fund's ratings:

The fund's grades are based on its relative performance within the Preferred Stock category. A grade of A indicates that the fund's return is in the highest 20% for that time period compared to all ETFs in that category.

The fund's expense ratio is considered high, and its portfolio turnover rate is higher than the category average. However, its grades suggest that it has performed well in certain time periods, particularly over the past year and three years.

Preferred stocks offer a unique blend of safety and return potential, but they're not without their risks.

They typically have a higher claim on assets than common stockholders in the event of bankruptcy.

Preferred stocks usually have a fixed dividend rate, which can provide a predictable income stream for investors.

The Virtus Infracap U.S. Preferred Stock ETF is designed to track the performance of the Bloomberg Barclays U.S. Preferred Stock Index.

Preferred stocks can be more volatile than bonds, especially during times of economic stress.