PFFA: Short-Term Pain, Long-Term Recession Protection

Daniel JonesInvesting Group LeaderFollowSummaryVirtus InfraCap US Preferred Stock ETF remains a buy, especially as a defensive play ahead of a potential recession.PFFA offers a 10% yield, leveraging preferred stock's seniority and diversification, though recent performance has lagged due to rising rates.The ETF is heavily weighted toward financials but maintains broad sector diversification, limiting single-issuer risk.Short-term underperformance is likely if rates rise, but PFFA is positioned to outperform during a downturn as the Fed pivots focus.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Dilok Klaisataporn/iStock via Getty Images Back in May of this year, I made the decision to reaffirm Virtus InfraCap US Preferred Stock ETF (PFFA) as a ‘buy’ candidate. This might seem peculiar to those who follow me closely. After all, historically speaking, theThis article was written byDaniel Jones37.72K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.