.One financial organization is actually making an effort to maximize participating preferred stocks u00e2 $" which bring additional dangers than bonds, but may not be as high-risk as usual stocks.Infrastructure Financing Advisors Founder and CEO Jay Hatfield takes care of the Virtus InfraCap United State Participating Preferred Stock ETF (PFFA). He leads the provider's committing and also organization advancement." High yield bonds and preferred stocksu00e2 $ u00a6 have a tendency to carry out much better than other set revenue types when the stock market is sturdy, and also when our team are actually showing up of a tightening up pattern like we are actually now," he said to CNBC's "ETF Edge" this week.Hatfield's ETF is up 10% in 2024 and just about 23% over recent year.His ETF's 3 best holdings are actually Regions Financial, SLM Corporation, and Energy Transmission LP since Sept. 30, depending on to FactSet. All 3 sells are actually up about 18% or more this year.Hatfield's group decides on names that it views as are actually mispriced relative to their risk as well as yield, he claimed. "Many of the best holdings reside in what our team get in touch with resource demanding companies," Hatfield said.Since its own Might 2018 creation, the Virtus InfraCap USA Participating Preferred Stock ETF is actually down almost 9%.