The Infrastructure Capital Equity Income ETF (NYSE: ICAP) is positioning itself as a solution for income-seeking investors as the Federal Reserve's policy direction remains unclear under new Chair Kevin Warsh. With the Fed holding rates steady at 3.5% to 3.75% and markets divided on whether the next move in September will be a hike, cut, or hold, ICAP offers exposure to high-quality large-cap stocks that pay dividends, potentially providing a buffer against volatility.
Managed by Infrastructure Capital Advisors, ICAP seeks to maximize income and pursue total return opportunities. The fund, with $113 million in assets as of July 8, 2026, invests at least 80% of its net assets in a diversified portfolio of large-cap equity securities that pay dividends. Portfolio manager Jay D. Hatfield, founder and CEO of Infrastructure Capital, brings nearly three decades of experience, employing a hands-on approach that includes proprietary company models, price target frameworks, and a selective option writing strategy with modest leverage of typically 15-30% to enhance income. Hatfield also manages other funds, including the InfraCap Small Cap Income Fund (NYSE: SCAP) and the InfraCap MLP ETF (NYSE: AMZA), with total assets under management exceeding $3.5 billion as of June 30, 2026.
The ETF's core holdings include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc., and Toll Brothers Inc., providing diversification across sectors. This approach aims to deliver monthly income or reinvested dividends while retaining upside market exposure, which could be particularly attractive amid the ongoing debate over interest rates. While some analysts anticipate three rate hikes in 2026 due to inflation concerns, others believe energy-driven inflation may ease, potentially leading to rate cuts. ICAP allows investors to avoid picking a side in this debate, focusing instead on income from quality large caps.
Investing involves risks, including possible loss of principal. The fund is subject to risks related to equities, dividend-paying securities, utilities, and other factors. Past performance does not guarantee future results. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the fund, please click here. For more information about the fund or Infrastructure Capital, contact Craig Starr at 212-763-8336.
