The Federal Reserve's policy direction under new Chair Kevin Warsh remains uncertain, with markets divided on whether rates will rise, fall, or stay steady at the next meeting in September. Against this backdrop, the Infrastructure Capital Equity Income ETF (NYSE: ICAP) offers investors a way to gain exposure to large-cap equities while seeking income and total return opportunities.
ICAP is an actively managed exchange-traded fund that invests at least 80% of its net assets in a diversified portfolio of large-capitalization equity securities that pay dividends. As of July 8, 2026, the fund held $113 million in assets under management. It is managed by Jay D. Hatfield, founder, CEO and portfolio manager of Infrastructure Capital Advisors, who brings nearly three decades 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 and employs a selective option writing strategy along with modest leverage, typically 15-30%, to enhance income while retaining upside market exposure. The fund pays monthly distributions or allows income to be reinvested.
Core holdings in ICAP include Citizens Financial Group Inc., NextEra Energy Inc., Marvell Technology Inc., and Toll Brothers Inc., providing a diversified basket of leaders across various industries. Holdings are subject to change, and current top ten holdings can be viewed here.
The Fed's June meeting, Warsh's first as chair, left the federal funds rate unchanged at 3.5% to 3.75%, contrary to President Donald Trump's expectations of a cut. Warsh has signaled a focus on price stability and intends to be tough on inflation, leading some on Wall Street to anticipate a quarter-point rate hike in September. The consensus currently points to three rate hikes in 2026—September, October, and December—of 0.25% each.
However, since much of the 4.2% increase in inflation in May was driven by energy costs, other investors believe that energy-driven inflation will ease once the war in Iran concludes, potentially leading the Fed to hold rates steady or cut them. They also argue that rapid price acceleration may be ending. This back-and-forth uncertainty makes it challenging for income-seeking investors, highlighting the importance of quality.
Tariffs, high energy costs, and sticky inflation have hurt corporate profits in certain industries, prompting many investors to flee speculative growth stocks and move into income-paying large caps. Infrastructure Capital Advisors believes investors do not have to take a side in the Fed rate debate; they can wait it out with ICAP, which provides exposure to high-quality income-generating large-cap stocks.
For more information about the ICAP ETF, including its risks and strategies, investors can click here. Past performance does not guarantee future results, and investing involves risk, including possible loss of principal.
