As the Federal Reserve under new chair Kevin Warsh signals a shift toward prioritizing price stability over the labor market, the direction of interest rates remains uncertain. With the federal funds rate held at 3.5% to 3.75% after the June meeting, some Wall Street analysts anticipate up to three rate hikes in 2026, while others argue that energy-driven inflation may ease, potentially leading to rate cuts. This uncertainty creates challenges for income-seeking investors, who have increasingly turned to income-paying large-cap stocks amid volatility driven by tariffs, high energy costs, and sticky inflation.
The Infrastructure Capital Equity Income ETF (NYSE: ICAP) offers a solution by providing exposure to a diversified portfolio of large-cap equity securities that pay dividends, with a focus on maximizing income and pursuing total return opportunities. The actively managed fund, which had $113 million in assets under management as of July 8, 2026, is overseen by Jay D. Hatfield, Founder, CEO and Portfolio Manager of Infrastructure Capital Advisors, who brings nearly thirty years of experience in financial markets.
Hatfield employs a hands-on approach that includes maintaining proprietary company models and relationships with management teams to determine earnings estimates and forward-looking outlooks. He establishes price targets using a dynamic relative valuation framework based on the relationship between price, earnings and growth, and employs a selective option writing strategy and modest leverage of typically 15-30% to enhance income while retaining upside market exposure. Investors receive either a monthly payout or reinvested income.
Core holdings in the fund include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc. and Toll Brothers Inc., providing a diversified basket of leaders across industries. Fund holdings are subject to change; current top ten holdings can be found here.
As the market awaits the Fed's next action, the ICAP ETF allows investors to seek income while gaining exposure to high-quality large-cap stocks that pay dividends. Inflation may be rising, and volatility may be center stage, but the fund offers monthly income and an active shield against market swings through its disciplined approach and experienced management.
Investing involves risk, including possible loss of principal. An investment in the Fund may be subject to risks which include, among others, investing in equities securities, dividend paying securities, utilities, small-, mid- and large-capitalization companies, real estate investment trusts, master limited partnerships, foreign investments and emerging, debt securities, depositary receipts, market events, operational, high portfolio turnover, trading issues, active management, fund shares trading, premium/discount risk and liquidity of fund shares, which may make these investments volatile in price. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Small and Medium-capitalization companies, foreign investments and high yielding equity and debt securities may be subject to elevated risks. The Fund is a recently organized investment company with no operating history. Please see prospectus for discussion of risks. Diversification cannot assure a profit or protect against loss in a down market. Past performance does not guarantee future results. For more information about the Fund, Fund strategies or Infrastructure Capital, please reach out to Craig Starr at 212-763-8336 (Craig.Starr@icmllc.com). ICAP and SCAP are distributed by Quasar Distributors, LLC. AMZA, PFFA and PFFR are distributed by VP Distributors, LLC.
