Infrastructure Capital (ICA) announced the launch of the Infrastructure Capital Nasdaq Option Income ETF (QVOL), which began trading on the Nasdaq. QVOL aims to provide investors with high monthly income combined with capital appreciation by investing in companies within the Nasdaq Composite Index. The fund actively manages both its equity portfolio and option-writing activities, seeking to capture upside while generating premiums through option sales.
Unlike many competitor buy-write and option overlay strategies that systematically write long-duration options on an index, QVOL dynamically selects options on individual Nasdaq equities or indexes. The fund targets companies it believes are overvalued for option writing, using short-duration options to limit the upside cap typically associated with option strategies. This approach allows QVOL to participate in greater market upside than many peers while generating high income from annual option premiums.
The Nasdaq Composite Index and the Nasdaq-100 Index are highly correlated, with the largest non-financial companies in the Nasdaq-100 comprising about 80% to 90% of the broader composite's market capitalization. Due to market-cap weighting, top holdings overlap substantially. QVOL provides exposure to major tech companies, including the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla), while offering flexibility to select from a broader universe of stocks in the Nasdaq Composite.
ICA's active management process employs quantitative, qualitative, and relative valuation factors. The fund may favor stocks with lower relative prices or higher profitability compared to their index representation. When evaluating securities, ICA considers enterprise values, capital ratios, operating metrics, and financial ratios such as price-to-cash flow or price-to-earnings. The investment philosophy is disciplined, consistently applied, and centered on risk management, with sell decisions based on excessive valuation, better opportunities, or changes in a company's fundamentals.
QVOL joins ICA's existing ETF lineup, which includes the Infrastructure Capital Bond Income ETF (BNDS), Small Cap Income ETF (SCAP), Virtus U.S. Preferred Stock ETF (PFFA), REIT Preferred ETF (PFFR), InfraCap MLP ETF (AMZA), and Equity Income ETF (ICAP). Jay Hatfield, lead portfolio manager for all ICA funds, brings over 30 years of experience, and the firm manages more than $3.5 billion in assets as of the launch date.
Infrastructure Capital Advisors, LLC, an SEC-registered investment advisor based in New York City, was formed in 2012. The firm focuses on total-return opportunities in infrastructure sectors such as energy, real estate, transportation, industrials, and utilities, often investing in entities not taxed at the entity level, such as MLPs and REITs. For more information, visit https://www.infracapfunds.com.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. A prospectus with this and other information about the fund can be obtained by clicking here or calling 800-617-0004. QVOL is distributed by Quasar Distributors, LLC.
