24/7 Wall Street
19 Jul 2026, 15:00 UTC · 18h ago
Active Preferred ETFs: Why PFFA's 2.11% Fee Beats Passive Rivals in 2026
NewsImpactScreener rates every claim in this story for market impact and maps it to the tickers most exposed.
24/7 Wall Street
19 Jul 2026, 15:00 UTC · 18h ago
NewsImpactScreener rates every claim in this story for market impact and maps it to the tickers most exposed.
What the story claims
4 claims · each scored for market impact
The active Virtus InfraCap U.S. Preferred Stock ETF (PFFA) outperformed passive rival PGX with a 32% five-year return compared to a 5% loss for PGX. — Significant performance divergence suggests active management and leverage are currently superior to passive indexing in the preferred securities market.
+0.40PFFA provides a trailing yield of approximately 9.81%, with monthly payouts increasing annually since 2022. — High, growing yield in a volatile rate environment attracts income-seeking capital to active preferred ETFs.
+0.30Passive preferred ETFs like PFF and PGX have heavy concentration in U.S. bank and insurance credit, increasing risk as regional banks reprice deposits. — Concentration in financial sector credit creates a vulnerability to regional banking instability.
-0.30Continue reading
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PFFA utilizes a high expense ratio of 2.11% and modest leverage to drive its returns. — High fees and leverage increase the cost of carry and amplify potential drawdowns during market stress.
-0.20Which stocks this story touches
The fund is noted for muted performance and a 5% loss over five years compared to active alternatives.
The article highlights its strong five-year returns and superior yield compared to passive rivals.
Mentioned as a successful past call by an analyst, implying positive long-term growth.
[mutual] Both are passive benchmarks for the preferred securities market.
[mutual] Active fund PFFA competes against the benchmark passive fund PFF.
[mutual] Both are preferred stock ETFs competing for income-seeking investors.
[mutual] PFFD was launched explicitly to undercut PFF on cost.
[mutual] PFFD was launched explicitly to undercut PGX on cost.
[mutual] Active fund PFFA competes against the low-cost passive fund PFFD.
[mutual] Both are tools for investors seeking exposure to the preferred stock market.
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