As the Federal Reserve undergoes a shift in leadership and policy direction, investors are left guessing about the path of interest rates. New Chair Kevin Warsh, who took over in June, has signaled a focus on price stability over the labor market and a desire for the Fed to communicate less about monetary policy. At his first meeting, Warsh left the federal funds rate unchanged at 3.5% to 3.75%, disappointing President Donald Trump who had expected a cut.
Looking ahead to the Fed's September meeting, Wall Street is divided. Some analysts interpret Warsh's tough stance on inflation as a sign of a potential quarter-point rate hike, with the consensus projecting three hikes in 2026—in September, October, and December—of 0.25% each. However, others note that much of the 4.2% inflation increase in May was driven by energy costs, which may ease once the war in Iran concludes, allowing the Fed to hold rates steady or even cut them. This uncertainty has led many income-seeking investors to shift from speculative growth stocks into income-paying large caps, seeking stability and yield.
In this environment, the Infrastructure Capital Equity Income ETF (NYSE: ICAP) aims to offer a solution. Managed by Infrastructure Capital Advisors, the fund seeks to maximize income and pursue total return opportunities by investing at least 80% of its net assets in a diversified portfolio of large-cap equity securities that pay dividends. As of July 8, 2026, the fund had $113 million in assets under management.
The ETF is actively managed by Jay D. Hatfield, Founder, CEO and Portfolio Manager of Infrastructure Capital, who brings nearly thirty years of experience in financial markets. Hatfield employs a hands-on approach, 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 monthly payouts or the option to reinvest income.
Core holdings in the fund include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc. and Toll Brothers Inc., providing diversified exposure across industries. Fund holdings are subject to change.
For business and technology leaders, the ICAP ETF presents an opportunity to navigate interest rate uncertainty while generating income. By focusing on high-quality, dividend-paying large caps, the fund aims to provide a shield against market volatility and inflation. As the Fed's next move remains uncertain, investors may consider ICAP as a way to maintain equity exposure with an income twist.
Infrastructure Capital Advisors 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 over $3.5 billion in total assets as of June 30, 2026.
Investing in the fund involves risks, including possible loss of principal. Risks include investing in equities, dividend-paying securities, utilities, small-, mid- and large-cap companies, real estate investment trusts, master limited partnerships, foreign investments, debt securities, and others. The fund is recently organized with no operating history. Diversification does not assure a profit or protect against loss.
For more information about the ICAP ETF, including a prospectus, click here.
