.One financial agency is attempting to capitalize on participating preferred stocks u00e2 $" which carry more dangers than connections, however may not be as high-risk as typical stocks.Infrastructure Capital Advisors Founder and also CEO Jay Hatfield handles the Virtus InfraCap U.S. Participating Preferred Stock ETF (PFFA). He leads the firm's investing and also business development." High yield connections and chosen stocksu00e2 $ u00a6 tend to do much better than other predetermined income classifications when the stock exchange is actually solid, and when our company're emerging of a tightening up pattern like our team are actually right now," he told CNBC's "ETF Upper hand" this week.Hatfield's ETF is actually up 10% in 2024 as well as nearly 23% over the past year.His ETF's three best holdings are Regions Financial, SLM Enterprise, and also Electricity Transmission LP as of Sept. 30, depending on to FactSet. All three stocks are actually up approximately 18% or extra this year.Hatfield's team chooses names that it regards are mispriced relative to their danger and return, he said. "A lot of the top holdings remain in what our experts contact resource extensive services," Hatfield said.Since its own Might 2018 beginning, the Virtus InfraCap U.S. Participating Preferred Stock ETF is actually down practically 9%.