.One financial firm is actually attempting to capitalize on participating preferred stocks u00e2 $" which hold more risks than connects, but may not be as dangerous as common stocks.Infrastructure Financing Advisors Founder as well as chief executive officer Jay Hatfield manages the Virtus InfraCap U.S. Preferred Stock ETF (PFFA). He leads the provider's trading and also service progression." High yield bonds and favored stocksu00e2 $ u00a6 have a tendency to perform far better than other predetermined revenue types when the stock exchange is actually sturdy, and also when our experts're coming out of a securing pattern like our experts are currently," he told CNBC's "ETF Edge" this week.Hatfield's ETF is actually up 10% in 2024 as well as virtually 23% over the past year.His ETF's three leading holdings are actually Regions Financial, SLM Organization, as well as Power Move LP since Sept. 30, depending on to FactSet. All three stocks are up around 18% or more this year.Hatfield's group decides on titles that it considers are mispriced relative to their risk and return, he pointed out. "The majority of the leading holdings are in what our experts get in touch with possession demanding organizations," Hatfield said.Since its own Might 2018 beginning, the Virtus InfraCap U.S. Participating Preferred Stock ETF is down virtually 9%.