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Virtus InfraCap US Preferred Stock ETF outperforms with strong yield and risk-reward, rated Buy.

Analyst Insights
26 Mar 2026
Seeking Alpha
View Source
Neutral
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Virtus InfraCap US Preferred Stock ETF (PFFA) offers a strong risk-reward profile with a 48.83% total return over three years and a 9.27% trailing twelve months yield, earning it a Buy rating. Its sector diversification and active management, despite using leverage, have driven this outperformance. In contrast, First Trust Preferred Securities and Income ETF (FPE) is rated Hold due to its heavy 71% concentration in financials, although it benefits from international diversification and solid management. Preferred stock ETFs provide valuable diversification and high income but can decline alongside equities during market downturns, which may increase yields for income-focused investors.

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