Virtus InfraCap U.S. Preferred Stock ETF (PFFA)

Meet Infrastructure Capital Bond Income ETF (ARCA: BNDS) - a new fixed-income player with diverse mix of corporate, municipal, and government bonds.

The Virtus InfraCap U.S. Preferred Stock ETF pays a stable monthly dividend. Retired investors can count on a stable payment every month.

Active management can pay significant dividends when investing in more focused market sectors.

Preferred stocks are a great way to earn high current yields and get share price appreciation as market yields and interest rates fall.

Preferred shares get their name because they have a preference over common shares for dividend payments.

Last week, I was a speaker at the MoneyShow in Las Vegas. I was intrigued by one idea concerning preferred stocks from the discussions: that they will allow investors to benefit from the Fed’s interest rate increases.

With the Federal Reserve raising interest rates, many preferred stocks currently trade for well below their par values.

Virtus InfraCap U.S. Preferred Stock ETF is actively managed by Infrastructure Capital Advisors, more commonly known as InfraCap. The managers focus on generating attractive yield and income from the fund.

Most 401(k) accounts are invested into broad market stock and bond funds, or into “lifecycle” funds that balance stocks and bonds with allocations based on your expected retirement age.

That’s a big change from the past. Historically, my recommendations had focused on individual stocks, but as time passes, new opportunities arise.

In 2020, I added individual preferred stocks to my recommendations list. It has now been more than a year since that recommendation, and I am convinced that preferred stock investments should be a significant portion of your income-focused portfolio.

They say you can’t have it all, and that there’s no free lunch in investing. This is all true. But that doesn’t mean you can’t have both high monthly yields and be safe at the same time.