From CNBC: 2024-10-05 11:00:01

Financial firm Infrastructure Capital Advisors is focusing on preferred stocks, which are less risky than common stocks but riskier than bonds. CEO Jay Hatfield manages the Virtus InfraCap U.S. Preferred Stock ETF (PFFA), which has seen a 10% increase in 2024 and nearly 23% over the past year. The top holdings are Regions Financial, SLM Corporation, and Energy Transfer LP.

Hatfield’s strategy is to select mispriced stocks that offer good risk and yield potential. The ETF targets asset-intensive businesses that are expected to perform well in strong stock market conditions. Despite a 9% decrease since its May 2018 launch, the ETF continues to focus on high yield bonds and preferred stocks, which have shown stronger performance during market upswings and tightening cycles.

Read more: Fed rate cuts should favor preferred stocks, Virtus fund manager says