Finance
Fed rate cuts should favor preferred stocks, Virtus fund manager says
One financial firm is trying to capitalize on preferred stocks – which carry more risks than bonds, but aren’t as risky as common stocks.
Infrastructure Capital Advisors Founder and CEO Jay Hatfield manages the Virtus InfraCap U.S. Preferred Stock ETF (PFFA). He leads the company’s investing and business development.
“High yield bonds and preferred stocks… tend to do better than other fixed income categories when the stock market is strong, and when we’re coming out of a tightening cycle like we are now,” he told CNBC’s “ETF Edge” this week.
Hatfield’s ETF is up 10% in 2024 and almost 23% over the past year.
His ETF’s three top holdings are Regions Financial, SLM Corporation, and Energy Transfer LP as of Sept. 30, according to FactSet. All three stocks are up about 18% or more this year.
Hatfield’s team selects names that it deems are mispriced relative to their risk and yield, he said. “Most of the top holdings are in what we call asset intensive businesses,” Hatfield said.
Since its May 2018 inception, the Virtus InfraCap U.S. Preferred Stock ETF is down almost 9%.
Holiday shoppers plan to spend more, while taking on debt this season
Telecom exec pleads guilty to stealing $100 million from fraud-plagued government program
UAL, MS, ASML, PLD and more
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
CPA licensure program off to ‘promising’ start
-
Personal Finance5 days agoInvestors face delays moving certain assets from TreasuryDirect
-
Economics6 days agoInflation rate at 2.4%, topping expectations
-
Stock News6 days agoBeleaguered Stellantis ousts CFO, other top execs in bid to ‘redouble’ its focus
-
Economics6 days agoHurricane Milton inundates Florida
-
Finance5 days agoWells Fargo WFC Q3 2024 earnings
-
Economics6 days agoThe Democrats will struggle to retain the Senate
-
Economics5 days agoProducer price index September 2024:
-
Personal Finance5 days agoOzempic drives up health-care costs, whether you can get it or not