Why Income Investors Should Look Beyond Index Funds

In this interview, Jay Hatfield, CEO of Infrastructure Capital Advisors, discusses the advantages of investing in preferred stocks, highlighting their high yields and lower risk compared to common stocks. He explains how preferred stocks are senior to common stock, resulting in less risk and good total returns. Hatfield differentiates his firm's Virtus InfraCap U.S. Preferred Stock ETF (PFFA) from passive index funds like PFF, emphasizing the benefits of active management in fixed income, especially in managing call risk, interest rate risk, and credit risk. He also touches on the current CapEx boom and its implications for real assets, as well as his "Hatfield Rule" related to housing market declines and their impact on recessions, advocating for investors to monitor money supply, the Fed, and the housing market to predict economic trends.