PFFA - PFFA: Good Preferred Shares ETF Not A Good Time To Buy

2024-07-22 04:05:56 ET

Summary

• PFFA is an actively-managed preferred shares ETF.
• It boasts a 9.3% distribution yield, but is much riskier than average, and with leverage to boot.
• PFFA has returned 9.0% since late 2023, outperforming most bonds and bond sub-asset classes.
• Right now, with credit spreads tightening and default rates rising, is simply not the time to buy PFFA.

I last covered the Virtus InfraCap U.S. Preferred Stock ETF ( PFFA ) in late 2023. In that article , I argued that PFFA's strong dividend yield and stabilizing economic conditions made the fund a buy. PFFA has returned 9.0% since, outperforming most bonds and bond sub-asset classes, with positive capital gains and dividend growth....

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