PFFA's Top 20 Holdings: High Yield, Concentrated Risk

Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryVirtus InfraCap U.S. Preferred Stock ETF (PFFA) emphasizes high-yield preferred securities, with a 5-year NAV total return of 9.20%.PFFA’s portfolio is concentrated in Financial Services (33%), REITs Mortgage(20%), and Real Estate (19%), with top holdings offering yields up to 10.82% but carrying elevated risk.Investors should weigh PFFA’s high yields against significant credit and sector risks, as safer investment-grade alternatives offer only slightly lower yields.Looking for more investing ideas like this one? Get them exclusively at Trade With Beta. Learn More » Wasan Tita/iStock via Getty Images Virtus InfraCap US Preferred Stock ETF (PFFA) is not your typical preferred ETF. The fund uses leverage and systematically bets on low-rated issues in search of high yields — a strategy that generates attractive incomeThis article was written byArbitrage Trader15.71K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. 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.