Virtus InfraCap U.S. Preferred Stock ETF

Virtus InfraCap U.S. Preferred Stock ETF is an actively managed exchange-traded fund that seeks current income and, secondarily, capital appreciation through investments in preferred securities issued by U.S. companies with market capitalizations over $100 million. Preferred stocks in its portfolio pay regular dividends at specified rates and hold priority over common stocks for dividend payments and asset liquidation, offering yield advantages, payment priority, tax-favored income potential, and diversification benefits due to lower correlations with traditional stocks and bonds. The fund employs modest leverage, typically 20-30%, to enhance portfolio exposure and income, while utilizing options strategies for additional current income and opportunistic hedges against interest rate risk. Its active management focuses on security selection based on quantitative and qualitative factors, underweighting or eliminating callable preferreds with low or negative yield-to-call. Top holdings include preferred securities from companies like BANC OF CALIFORNIA INC, ENERGY TRANSFER LP, and TELEPHONE & DATA SYS. Managed by Infrastructure Capital Advisors as subadviser to Virtus Investment Advisers, the fund benchmarks against the S&P U.S. Preferred Stock Index and provides monthly distributions.