From Seekingalpha · Steven Fiorillo · · 50s
PFFA Yield Hits 10.7% As Fed Turns Hawkish
PFFA ETF delivers 10.7% yield despite Fed rate hikes and market shifts.
In brief
PFFA ETF delivers 10.7% yield despite Fed rate hikes and market shifts. PFFA ETF offers 10.7% yield while the Fed turns hawkish, maintaining monthly payouts. Originally reported by Seekingalpha.
PFFA Yield at 10.7%
Virtus InfraCap U.S. Preferred Stock ETF offers 10.7% yield outperforming its index and maintaining monthly payouts despite recent rate hikes.
Active Management Strategy
PFFA leverages active management, sector tilts, and an options overlay to enhance income and capitalize on preferred market inefficiencies.
Leverage and Risk Profile
The fund uses 25% leverage of NAV and sector concentration to drive yield and risk, with rising rates increasing funding costs but maintaining an attractive income spread.
Investor Recommendation
The analyst plans to add to PFFA below $20, favoring its wide yield spread and resilient distributions for income-focused portfolios.
In short
PFFA ETF offers 10.7% yield while the Fed turns hawkish, maintaining monthly payouts.
