With the Federal Reserve under new chair Kevin Warsh potentially shifting its policy focus toward price stability and away from labor market considerations, the direction of interest rates remains uncertain. The Fed held rates steady at 3.5% to 3.75% in June, but some analysts anticipate up to three quarter-point rate hikes in 2026—in September, October and December—while others argue that energy-driven inflation may ease, allowing the Fed to hold or cut rates. This uncertainty creates a challenging environment for income-seeking investors.
Amid this backdrop, the Infrastructure Capital Equity Income ETF (NYSE: ICAP) aims to provide a solution. The actively managed fund, with $113 million in assets as of July 8, 2026, invests at least 80% of its net assets in a diversified portfolio of large-capitalization equity securities that pay dividends. Managed by Infrastructure Capital Founder, CEO and Portfolio Manager Jay D. Hatfield, who brings nearly thirty years of experience, the fund employs a hands-on approach that includes proprietary company models, dynamic relative valuation frameworks, selective option writing and modest leverage of typically 15-30% to enhance income while retaining upside market exposure. Investors receive monthly payouts or reinvested income.
The fund's core holdings include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc. and Toll Brothers Inc., offering exposure to a diversified basket of leaders across various industries. Hatfield also manages the InfraCap Small Cap Income Fund (NYSE: SCAP), InfraCap MLP ETF (NYSE: AMZA), InfraCap REIT Preferred ETF (NYSE: PFFR), Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA) and a series of hedge funds, with total assets under management exceeding $3.5 billion as of June 30, 2026.
As the market waits for the Fed's next move, the ICAP ETF seeks to provide income and an active shield against market volatility through its focus on high-quality large-cap stocks that pay dividends. By combining equity exposure with income-generating strategies, the fund offers investors a way to navigate interest rate uncertainty without having to pick a side in the rate debate.
