.One financial firm is attempting to profit from participating preferred stocks u00e2 $" which carry additional risks than connections, but aren't as risky as usual stocks.Infrastructure Funds Advisors Founder and CEO Jay Hatfield manages the Virtus InfraCap U.S. Preferred Stock ETF (PFFA). He leads the provider's investing and service development." High yield bonds and also preferred stocksu00e2 $ u00a6 have a tendency to perform much better than various other predetermined income types when the securities market is actually strong, as well as when we're showing up of a tightening pattern like we are actually currently," he said to CNBC's "ETF Advantage" this week.Hatfield's ETF is up 10% in 2024 as well as practically 23% over the past year.His ETF's 3 leading holdings are actually Regions Financial, SLM Corporation, and Electricity Transmission LP as of Sept. 30, depending on to FactSet. All three supplies are up around 18% or even even more this year.Hatfield's crew chooses names that it regards as are mispriced relative to their threat and return, he pointed out. "Most of the leading holdings are in what our experts get in touch with asset extensive organizations," Hatfield said.Since its May 2018 inception, the Virtus InfraCap U.S. Preferred Stock ETF is down almost 9%.