SOURCE: InfraCap

February 08, 2017 10:35 ET

Infrastructure Capital Advisors Debuts the InfraCap REIT Preferred ETF

New Fund (NYSE: PFFR) Targets High Quality Yield Opportunities in Real Estate Sector

NEW YORK, NY--(Marketwired - Feb 8, 2017) - Infrastructure Capital Advisors (InfraCap), a New York City based investment advisor, has partnered with Virtus ETF Solutions to introduce the InfraCap REIT Preferred ETF. The newly launched ETF will trade on the New York Stock Exchange under the ticker PFFR (NYSE: PFFR), joining the InfraCap MLP ETF (NYSE Arca: AMZA).

PFFR is being introduced on the heels of the categorization of real estate as a distinct market sector. The fund itself will track the Indxx REIT Preferred Stock Index, and expand upon InfraCap's focus on yield-producing investment strategies. Institutional asset allocators can find a place for PFFR in funds for income investors and it will also be suitable for use in IRAs and 401(k)s. PFFR is a rules-based strategy that will rebalance semi-annually.

The fund is the only ETF offering a diversified investment in high yielding liquid preferred securities issued by Real Estate Investment Trusts (REITs). The fund is broadly diversified in terms of both REIT sectors -- including mortgage, office properties, hotels, healthcare, shopping centers and others -- and company issuers. The fund includes 31 securities from 26 different issuers. Each security in the fund has a minimum issue size of $75 million and an average monthly trading volume in excess of 250,000 shares. The index requires each security to have a yield-to-worst of at least 3%. 

Jay D. Hatfield, Co-founder and President of InfraCap, commented on the launch, saying "PFFR is one of the newest products to overlap the newly added 11th sector in the S&P 500 and allows investors to invest in the real estate industry without having to select individual companies. We also believe it will be extremely attractive to investor's looking for income in a yield-stretched market."

PFFR carries an expense ratio of 0.45% and the index calculations allow for concentrated positions as dictated by the rules-based methodology, but no position will exceed 10% of the underlying index. Sector limits are also in place.

ABOUT INFRASTRUCTURE CAPITAL ADVISORS, LLC

Infrastructure Capital Advisors, LLC is an SEC-registered investment advisor that manages an actively managed ETF and a series of private investment partnerships. The firm was formed in 2012 and is based in New York City. The company seeks total return opportunities in key infrastructure sectors, including energy, real estate, transportation, industrials and utilities. It often identifies opportunities in entities that are not taxed at the entity level, such as master limited partnerships ("MLPs") and real estate investment trusts ("REITs"). It also looks for opportunities in credit and related securities, such as preferred stocks. Current income is a primary objective in most, but not all, of the company's investing activities. The focus is generally on companies that generate and distribute substantial streams of free cash flow. For more information, please visit infracappffr.com or infracapmlp.com.

DISCLOSURE

Expenses are based on estimated amounts for the current fiscal year. The management fee is structured as a "unified fee", out of which the Fund's sub-adviser pays all routine expenses for the Fund, except payments under any 12b-1 plan; taxes and other governmental fees; brokerage fees, commissions and other transaction expenses; interest and other costs of borrowing money; litigation or arbitration expenses; acquired fund fees and expenses; and extraordinary expenses of the Fund, each of which is paid by the Fund.

The InfraCap REIT Preferred Stock Index is a market cap weighted index designed to provide diversified exposure to high yielding liquid preferred securities issued by Real Estate Investment Trusts listed in the US.

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. Contact ETF Distributors LLC at 1-888-383-4184 or visit www.infracappffr.com to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing.

Fund Risks:

Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.

Real Estate Investment: The fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.

Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

Passive Strategy/Index Risk: A passive investment strategy seeking to track the performance of the Underlying Index may result in the Fund holding securities regardless of market conditions or their current or projected performance. This could cause the Fund's returns to be lower than if the Fund employed an active strategy.

Correlation to Index: The performance of the fund and its index may vary somewhat due to factors such as fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

Market Volatility: Securities in the fund may go up or down in response to the prospects of individual companies and general economic conditions. Price changes may be short or long term.

No Guarantee: There is no guarantee that the portfolio will meet its objective.

Virtus ETF Advisers, LLC serves as the investment advisor and Infrastructure Capital Advisors, LLC serves as the sub-advisor to the Fund.

The Fund is distributed by ETF Distributors LLC, an affiliate of Virtus ETF Advisers, LLC.

Contact Information

  • Contacts:
    Fund Information:
    ETF Distributors LLC
    Phone: 212-593-4383 or 1-888-383-4184 (toll free)
    Email: info@etfis.com

    Media
    Kim Harmsen
    Gregory FCA for InfraCap
    610-228-2134
    Kim@gregoryfca.com