{"id":4314,"date":"2024-10-07T01:12:20","date_gmt":"2024-10-07T01:12:20","guid":{"rendered":"https:\/\/smartspending.ai\/fed-rate-cuts-should-favor-preferred-stocks-virtus-fund-manager-says\/"},"modified":"2024-10-06T20:57:53","modified_gmt":"2024-10-06T20:57:53","slug":"fed-rate-cuts-should-favor-preferred-stocks-virtus-fund-manager-says","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=4314","title":{"rendered":"Fed rate cuts should favor preferred stocks, Virtus fund manager says"},"content":{"rendered":"
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One financial firm is trying to capitalize on preferred stocks \u2013 which carry more risks than bonds, but aren’t as risky as common stocks.<\/p>\n

Infrastructure Capital Advisors Founder and CEO Jay Hatfield manages the Virtus InfraCap U.S. Preferred Stock ETF (PFFA)<\/span>. He leads the company’s investing and business development.<\/p>\n

“High yield bonds and preferred stocks\u2026 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.<\/p>\n

Hatfield’s ETF is up 10% in 2024 and almost 23% over the past year.<\/p>\n

His ETF’s three top holdings are Regions Financial<\/span>, SLM Corporation<\/span>, and Energy Transfer LP<\/span> as of Sept. 30, according to FactSet. All three stocks are up about 18% or more this year.<\/p>\n

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.<\/p>\n

Since its May 2018 inception, the Virtus InfraCap U.S. Preferred Stock ETF is down almost 9%.<\/p>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

One financial firm is trying to capitalize on preferred stocks \u2013 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\u2026<\/p>\n","protected":false},"author":2,"featured_media":4027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[139,140,137,143,144,141,138,108,142],"class_list":{"0":"post-4314","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-cuts","9":"tag-favor","10":"tag-fed","11":"tag-fund","12":"tag-manager","13":"tag-preferred","14":"tag-rate","15":"tag-stocks","16":"tag-virtus"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/4314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4314"}],"version-history":[{"count":2,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/4314\/revisions"}],"predecessor-version":[{"id":4317,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/4314\/revisions\/4317"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/4027"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}