Monday, there was a new SEC filing for an ETF that income-focused investors might find useful. The InfraCap REIT Preferred ETF (PFFR) [advised by Virtus ETF Advisers, subadvised by Infrastructure Capital Advisors]
will target U.S.-listed preferred securities issued by REITs. Each security must have at least $75M in market cap and a six-month ave. monthly trading volume of at least 250K shares. The yield-to-worst on each security must be at least 3%, and diversification rules limit the weight of any REIT subsector to 30% of the index; however, the diversified REIT subsector is limited to 35%. Issuer weights are capped at 10%, the prospectus said.
As of the end of September, the index covered only 26 issuers and 31 individual securities. Currently, there are seven preferred stock ETFs that are listed in the U.S., but none of them is focused on REIT-issued securities. PFFR would be the first of its kind.
http://www.etf.com/sections/daily-etf-watch/etf-watch-infracap-reit-pref-securities-fund-filedhttps://www.sec.gov/Archives/edgar/data/1559109/000089109216019013/e71946_485apos.htmSo, not unprecedented in its limited scope, but .... seems kinda concentrated, on
several levels. In your portfolio, if you were to hold it, would you consider/treat it more like a fund, or more like a stock? Or does it really matter in this case, more or less than the other 7 cases of pfd stock ETFs?
