Investors are closely watching the Federal Reserve under new chair Kevin Warsh, who has signaled a shift in focus toward price stability and reduced communication on monetary policy. With the federal funds rate currently held at 3.5% to 3.75%, opinions vary on whether the Fed will cut, raise, or maintain rates at its September meeting. Some anticipate three rate hikes in 2026, while others believe inflation may ease as energy costs stabilize, leading to a potential hold or cut. Amid this uncertainty, the Infrastructure Capital Equity Income ETF (NYSE: ICAP) offers a strategy that seeks to maximize income and pursue total return opportunities through an actively managed portfolio of large-cap dividend-paying equities.
Managed by Jay D. Hatfield, founder and CEO of Infrastructure Capital Advisors, ICAP brings nearly thirty years of financial market experience to investors. Hatfield employs a hands-on approach, maintaining proprietary company models and relationships with management teams to estimate earnings and forward-looking outlooks. He establishes price targets using a dynamic relative valuation framework and utilizes a selective option writing strategy along with modest leverage, typically 15-30%, to enhance income while retaining upside market exposure. The fund, with $113 million in assets under management as of July 8, 2026, provides monthly payouts or income reinvestment options.
The core holdings in ICAP include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc., and Toll Brothers Inc., offering a diversified basket of leaders across various industries. By focusing on high-quality, income-generating large caps, the fund aims to be a gateway for investors seeking yield without having to pick a side in the Fed rate debate. As tariffs, high energy costs, and sticky inflation impact corporate profits, many investors have moved from speculative growth stocks to income-paying large caps, a trend ICAP capitalizes on.
Infrastructure Capital Advisors manages over $3.5 billion in total assets across multiple funds, including the InfraCap Small Cap Income Fund (NYSE: SCAP), InfraCap MLP ETF (NYSE: AMZA), InfraCap REIT Preferred ETF (NYSE: PFFR), and Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA). The firm's active management style is designed to navigate volatile markets and provide a shield against swings, making ICAP a potential option for those seeking monthly income and large-cap equity exposure.
Investing involves risks, including possible loss of principal. The fund is subject to risks such as investing in equities, dividend-paying securities, utilities, and foreign investments, among others. Diversification does not ensure a profit or protect against loss. Past performance does not guarantee future results. For more details, investors can view the fund's prospectus here.
