Virtus launches VPFF ETF for current income
Virtus Investment Partners introduced the Virtus InfraCap Preferred and Income Securities ETF (VPFF), an actively managed fund subadvised by Infrastructure Capital Advisors. The fund targets current income through U.S. preferred securities, employing active risk management to handle interest rate and issuer concentration risks. It is the 27th ETF in the Virtus ETF Solutions platform.
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Virtus Investment Partners, Inc. today announced the launch of the Virtus InfraCap Preferred and Income Securities ETF (VPFF), an actively managed exchange-traded fund designed to generate current income through a portfolio of preferred securities issued by U.S. companies. The fund is subadvised by Infrastructure Capital Advisors, LLC and represents the 27th ETF offered through Virtus’ multi-manager ETF platform, Virtus ETF Solutions. This launch addresses investor demand for an unlevered version of the Virtus InfraCap U.S. Preferred Stock ETF (PFFA).
Investment Strategy
The fund invests primarily in U.S. preferred securities, utilizing an active management approach to mitigate risks associated with callable securities, fluctuating interest rates, and issuer concentration. The portfolio management team relies on market analysis, fundamental research, and ongoing portfolio reviews to identify investment opportunities.
Management Commentary
Jay Hatfield, CEO and CIO of Infrastructure Capital, highlighted the fund's alignment with market needs. "In the current market environment, investors are seeking high income with low volatility," said Hatfield. "VPFF seeks to offer investors the benefits of a high-yielding diversified basket of preferred stocks, with rigorous and active risk management."
William J. Smalley, executive managing director of Virtus ETF Solutions, emphasized the strategic importance of the launch. "The launch of VPFF further strengthens Virtus’ position as a leading provider of preferreds strategies within the ETF market," Smalley stated. "VPFF applies Infrastructure Capital’s active investment process and implementation techniques in a portfolio that is designed for investors seeking current income with an emphasis on disciplined security selection and risk management."
Key Fund Details
| Feature | Details |
|---|---|
| Ticker | VPFF |
| Exchange | NYSE |
| Primary Focus | U.S. preferred securities |
| Management Style | Actively managed |
| Subadvisor | Infrastructure Capital Advisors, LLC |
| Platform | Virtus ETF Solutions |
How will the performance of VPFF compare to its leveraged counterpart, PFFA, during different interest rate cycles?
What impact might the launch of VPFF have on the asset flows of other existing preferred stock ETFs in the market?
Will Virtus and Infrastructure Capital Advisors introduce additional unlevered versions of their other leveraged ETF products?
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