PFFA (PFFA)

Virtus InfraCap U.S. Preferred Stock ETF and InfraCap Equity Income Fund ETF have updated their beneficial ownership of RLJ Lodging Trust's $1.95 Series A Cumulative Convertible Preferred Shares as of June 30, 2026. Virtus InfraCap holds 1,985,178 shares (15.78%), while InfraCap Equity Income Fund ETF holds 47,645 shares (0.37%), both with shared voting and dispositive power. Infrastructure Capital Advisors, LLC and Jay Hatfield report no direct beneficial ownership, as all reported shares are held in client accounts.

The Virtus InfraCap US Preferred Stock ETF (PFFA) is recommended as a buy due to its high 10% yield and defensive properties against a potential recession. Despite recent underperformance caused by rising interest rates, PFFA is expected to perform well during economic downturns, benefiting from preferred stocks' seniority and sector diversification. The ETF's structure positions it as a strong asset for recessionary periods, even if short-term interest rate increases continue to impact its performance.

The Virtus InfraCap US Preferred Stock ETF (PFFA) offers a 10% yield, attractive to income-focused investors, but is heavily concentrated in the financial and real estate sectors. This concentration exposes the ETF to significant interest rate sensitivity and specific sector risks. While suitable for income portfolios, its capital appreciation potential is limited, and rising interest rates could negatively impact its share price and NAV volatility.

The PFFA ETF, managed by Virtus, is an actively managed fund investing in preferred U.S. equities, utilizing modest leverage. It boasts a high dividend yield of 9.81% and has assets under management of $2.47 billion. The fund's primary advisor is Virtus Investment Advisers LLC, and it launched on May 15, 2018.

The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) provides a 9.9% forward yield through monthly dividends of $0.1725 per share, achieved by investing in US preferred stocks and utilizing about 20.5% leverage. The fund targets high-yield sectors like financial institutions and utilities, balancing risk with investment-grade issuers. PFFA is presented as an attractive option for investors seeking high monthly income with moderate risk, having consistently increased distributions since 2020.