Infrastructure Capital Launches Actively-Managed ICAP ETF for Equity Income in Low-Rate Environment

Finding income from equity investments remains a priority for investors seeking more than just price returns, yet identifying a single investment fund to achieve this goal presents challenges. With interest rates globally remaining low and Federal Reserve Board members divided after its January 27-28 meeting on whether to maintain or further reduce rates, investors must carefully position their equity and bond portfolios for income generation. Income, whether from dividends or bonds, constitutes a key component of any well-constructed portfolio, and solutions include using single ETF products that can achieve these dual objectives with varying degrees of success, requiring diligent investor choices to meet comfort levels.

Jay D. Hatfield, Founder and CEO of Infrastructure Capital, noted, "Investors are always looking for income; however, today’s historically low-interest rate environment and considerable inflation pressures make it difficult to identify income opportunities." Infrastructure Capital has launched an ETF structured to address these challenges. The Infrastructure Capital Equity Income Fund ETF (NYSEARCA: ICAP) offers investors an equity position that provides dividend income. As of December 31, 2025, the fund had nearly $100 million in assets under management with a management fee of 0.80%, a total expense ratio of 2.47%, and a 30-day securities yield of 5.33%.

Equity income ETFs invest in diversified portfolios of dividend-paying stocks, aiming to provide steady income alongside potential capital appreciation, focusing on established companies with strong cash flows. ICAP is an actively managed ETF that primarily invests in company equities with a strong track record of paying dividends in normal market conditions, launched by Infrastructure Capital in December 2021 and paying a monthly dividend. The fund seeks to achieve high yield by investing at least 80% of its net assets in a diversified portfolio of equity securities of dividend-paying companies, with up to 20% in various debt securities, including junk bonds, and using options to generate additional income, hedge risks, and reduce volatility.

Through active management, security selection and weightings are based on rigorous fundamental analysis and global macroeconomic factors, managed by Hatfield, who applies nearly three decades of capital markets experience. The ETF structure offers potential tax and cost efficiencies due to an "in-kind" mechanism that allows meeting redemptions without selling securities and realizing capital gains. The fund has no underlying index and uses a proprietary index weighting and methodology based on broad-based, global-listed equity stocks, rebalancing every fiscal quarter. It employs a selective option writing strategy and modest leverage, typically 15-30%, to enhance income while retaining upside market exposure.

Top holdings of ICAP as of February 24, according to ICAP’s fund page, include McDonald’s, Amazon, Global Net Lease, Citizens Financial Group, Toll Bros., Marvell Technologies, Lennar Corp., NextEra Energy, Philip Morris International, and Apollo Global Management. The recent dividend track record shows per-share payments for a one-year holding, such as $0.24 on January 29, 2026, and $0.28 on December 30, 2025. While the Fed remains divided, lower benchmark rates could reduce the yield advantage of government debt, potentially prompting investors to reassess the balance between risk-free securities and other income-generating assets, altering the competitive landscape for yield and highlighting equity-based income strategies like ICAP.