As the Federal Reserve navigates a new era under Chair Kevin Warsh, with a renewed focus on price stability and less forward guidance, the direction of interest rates remains uncertain. Wall Street is divided on whether the Fed will cut, raise, or hold rates at its September meeting, with some anticipating a quarter-point hike and others expecting a pause or cut due to easing energy-driven inflation. In this environment, income-seeking investors may find the Infrastructure Capital Equity Income ETF (NYSE: ICAP) a compelling option. The fund, managed by Infrastructure Capital Advisors, aims to maximize income and total return by investing primarily in large-cap equity securities that pay dividends.
The ICAP ETF, which had $113 million in assets under management as of July 8, 2026, is actively managed by Jay D. Hatfield, founder and CEO of Infrastructure Capital. Hatfield brings nearly three decades of experience in financial markets, having worked as an investment banker, portfolio manager, and research director. His approach includes maintaining proprietary company models, establishing price targets through a dynamic relative valuation framework, and employing a selective option writing strategy with modest leverage (typically 15-30%) to enhance income while retaining upside market exposure. The fund offers monthly payouts or reinvestment of income.
Core holdings include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc., and Toll Brothers Inc., providing a diversified basket of leaders across industries. Holdings are subject to change, and the current top ten can be found here. As the market awaits the Fed's next move, ICAP offers a way to seek income and potentially mitigate volatility through exposure to high-quality large-cap stocks.
Investors should consider the risks, including those related to equities, dividend-paying securities, utilities, and foreign investments. For more information, the prospectus is available here. Past performance does not guarantee future results.
