Virtus InfraCap U.S. Preferred Stock ETF rated Strong Buy for 3 years amid high yields and stable credit conditions.

The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) maintains a Strong Buy rating for a 3-year horizon due to its high starting yields and resilient credit environment. However, recent macroeconomic shifts, including persistent high interest rates and emerging credit concerns, have narrowed potential upside and increased the need for close monitoring of credit and rate risks. The ETF's returns are mainly driven by distributions, with elevated yields providing downside protection. Investors are advised to accumulate shares gradually and remain vigilant about credit and rate developments as risks have modestly increased.