Understanding the VIRTUS Infracap U.S. Preferred Stock ETF (PFFA)

What this ETF is trying to do

The PFFA ETF is a type of fund that invests in "preferred stocks." These are special kinds of shares in companies. This ETF aims to provide regular income to its investors by collecting payments from these preferred stocks.

What the numbers show

As of July 10, 2026, the current price of one share is $20.95. If we look back at the last year, the price was estimated to be about $21.33.

When looking at performance, it is important to see two different numbers: the "price return" and the "total return."

• The one-year price return was -1.78%. This means the share price itself went down slightly.

• The one-year total return was 8.07%. This number is higher because it includes the extra money paid out to investors.

To see how this works, imagine you invested $10,000 into this ETF one year ago. If you only looked at the share price, your $10,000 would have dropped in value because the price fell by 1.78%. However, because of the extra payments (distributions), your total investment would actually be worth more than when you started.

Income and distribution explanation

This ETF is designed to pay out money regularly. Over the last 12 months, it made 12 separate payments. These payments usually happen once a month. The "distribution yield" is 9.80%, which tells you how much cash the fund paid out compared to its price.

It is important to remember that a high yield alone can be misleading. A very high percentage might look good, but it doesn't tell you if the actual value of your investment is staying healthy.

NAV erosion explanation

"NAV erosion" is a term used when the value of the fund's underlying assets keeps dropping over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) in, the level of the water (the share price) keeps getting lower.

If an ETF has severe erosion, the share price can fall from a high price to a much lower price. This can destroy your "principal," which is the original money you put in. If the price drops too much, even the monthly payments might not be enough to make up for the lost value. Fortunately, for PFFA, the data shows "no price erosion detected."

Pros

• It provides regular monthly income.

• The total return over three years has been quite high at 42.89%.

Cons

• The actual share price can go down (negative price return), even if the total return is positive.

Beginner takeaway

Income investors usually prefer ETFs that stay steady or go up slightly in price. They want to make sure their original investment stays safe while they collect payments. When looking at an ETF, always look at the "total return" to see how much you actually made after all the payments are counted.