PFFR: Don't Let This 7% Yield Hypnotize You
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The InfraCap REIT Preferred ETF (PFFR) offers a 7.21% SEC yield by investing in high-yielding REIT preferred securities. However, it carries high risk with only 20.7% investment-grade assets and a 56.5% concentration in the top 10 issuers. Since its inception, PFFR's share price has declined by 26.2%, leading to a 48% loss in inflation-adjusted value over 7 years.
March 09, 2025 | 11:45 am
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The InfraCap REIT Preferred ETF (PFFR) offers a high yield but is risky due to low investment-grade assets and high concentration in top issuers. Its share price has significantly declined since inception.
PFFR's high yield is overshadowed by its high-risk profile, with a low percentage of investment-grade assets and significant concentration in top issuers. The historical decline in share price further suggests potential downside risk.
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IMPORTANCE 80
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