.One financial agency is actually making an effort to take advantage of participating preferred stocks u00e2 $" which bring even more threats than bonds, but may not be as risky as typical stocks.Infrastructure Resources Advisors Owner and chief executive officer Jay Hatfield manages the Virtus InfraCap United State Participating Preferred Stock ETF (PFFA). He leads the firm's trading as well as organization growth." High return connects and also favored stocksu00e2 $ u00a6 tend to perform far better than various other set revenue classifications when the stock market is powerful, as well as when our team are actually coming out of a securing cycle like our team are actually now," he told CNBC's "ETF Upper hand" this week.Hatfield's ETF is up 10% in 2024 and also practically 23% over the past year.His ETF's three top holdings are actually Regions Financial, SLM Company, as well as Power Transmission LP as of Sept. 30, according to FactSet. All 3 sells are actually up about 18% or even even more this year.Hatfield's staff selects labels that it considers are mispriced relative to their risk and also turnout, he said. "A lot of the leading holdings remain in what we phone resource intensive companies," Hatfield said.Since its Might 2018 creation, the Virtus InfraCap U.S. Participating Preferred Stock ETF is actually down almost 9%.