CEO Jay Hatfield of Infrastructure Capital Advisors predicts preferential stock benefits from Federal Reserve rate cuts, with his Virtus InfraCap US Preferred Stock ETF showing 23% growth over a year.
Jay Hatfield, CEO of Infrastructure Capital Advisors, believes Federal Reserve rate cuts will benefit preferred stocks, which are riskier than bonds but safer than common stocks. His Virtus InfraCap U.S. Preferred Stock ETF (PFFA) has gained 10% in 2024 and nearly 23% over the past year, primarily investing in undervalued, asset-intensive companies. However, since its launch in May 2018, the ETF has declined by almost 9%. Top holdings include Regions Financial, SLM Corporation, and Energy Transfer LP.
October 05, 2024
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