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Virtus InfraCap preferred stock ETF PFFA touts active edge over PGX
PFFA charges a 2.11% expense ratio, and the article cites about a 32% five-year return versus PGX down 5% over the same period.
A financial market piece from Yahoo Finance argues that the Virtus InfraCap U.S. Preferred Stock ETF, ticker PFFA, justifies active management in the preferred stock exchange traded fund space, particularly versus passive options such as the Invesco Preferred ETF (PGX). The story highlights that preferred shares can behave differently from traditional fixed income, as they are rate sensitive but also deeply subordinated compared with common equity.
According to Yahoo Finance, PFFA’s active approach is positioned as an income tool that can adjust exposures across coupons, call dates, and issuers, aiming to generate more yield than passive baskets that tend to reflect whatever the largest issuers have recently issued. The article also frames the debate around cost, saying PFFA’s 2.11% expense ratio can compound for investors even when returns lag.
The outlet cites performance comparisons to support its claim: PFFA is described as delivering roughly a 10% yield and a 32% five-year return, while PGX is described as losing about 5% over the same period. It adds that another fund, PFXF, is highlighted as excluding financials from the preferred universe entirely, implying different positioning choices for investors.
Yahoo Finance also provides fund scale and leverage context, stating PFFA runs about $2.41 billion across 196 holdings and uses modest leverage, with total assets of $2.95 billion against net assets of $2.35 billion. The article concludes that the active-versus-passive case is most compelling for income focused investors who accept both leverage and manager risk.