PFF - PFFA: 10% Yield Is Attractive But There Are No Free Lunches
2024-02-05 12:00:00 ET
Summary
- Investors often chase unrealistically high yields, leading to disappointment and losses.
- Virtus InfraCap U.S. Preferred Stock ETF attracts investors with its ~10% yield and promise of secure preferred distributions.
- We take a look at PFFA to see if it is another example of a broken promise of a free lunch.
TANSTAAFL: There Ain't No Such Thing As A Free Lunch. That is one of the first economic acronyms and laws that I remember learning when I was seven years old. Yet, across the investing universe, it seems that professional investors and retail investors alike are constantly operating under the illusion that this law does not apply and that they can indeed create a free lunch with just enough financial engineering....
PFFA: 10% Yield Is Attractive, But There Are No Free Lunches