Looking To Generate Income Through Equity-Based Instruments In 2026? You May Want To Check Out This Actively-Managed ICAP ETF 19.03.2026, 13:35 Uhr von EQS News Jetzt kommentieren: 0

By Drew Voros, Benzinga

DETROIT, MICHIGAN - March 19, 2026 (NEWMEDIAWIRE) - Finding income from an equity investment fits the bill for investors looking for more than just price returns. But how one goes about discovering a single investment fund to achieve that goal can be a challenge for many investors.

With interest rates around the world remaining low and members of the Federal Reserve Board divided after its Jan. 27-28 meeting on whether to keep rates where they are now, or push them even lower, investors should be aware of how they are positioned if seeking income from their equity and bond investments.

Income, whether from dividends of bonds, is a key component of any well-constructed portfolio. There are solutions, including using single ETF products that can achieve those two goals with varying degrees of success, and a diligent investor has choices to make to meet their comfort level.

Difficult Environment

“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,” said Infrastructure Capital Founder & CEO Jay D. Hatfield.

Infrastructure Capital has launched an ETF structured to meet those goals. Infrastructure Capital Equity Income Fund ETF (NYSEARCA: ICAP) offers investors an equity position that provides dividend income. The fund has 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%, as of Dec. 31, 2025.

Equity income ETFs are exchange-traded funds that invest in a diversified portfolio of dividend-paying stocks, designed to provide investors with a steady stream of income alongside potential capital appreciation. These funds focus on established companies with strong cash flows, making them popular with conservative investors seeking higher yields than bonds, often with lower volatility.

ICAP is an actively managed ETF that primarily invests in company equities with a strong track record of paying dividends in normal market conditions, reports Infrastructure Capital, which launched the fund in December 2021 and pays a monthly dividend. ICAP seeks to provide income and pursue total return.

How ICAP Works

The fund’s selection process uses the following key features:

Diversified Income 

The fund seeks to achieve high yield by investing at least 80% of its net assets in a diversified portfolio of equity securities of companies that pay dividends. Up to 20% of the assets may be invested in various debt securities that can include junk bonds and can use options to generate additional income, hedge against additional risks, and reduce volatility.

Active Management 

Through active management, security selection and weightings are based on rigorous, fundamental analysis and global macroeconomic factors. The fund is managed by Jay D. Hatfield, founder, CEO and lead portfolio manager at Infrastructure Capital. With nearly three decades of capital markets experience spanning equity research, fixed income trading, energy infrastructure and real estate, Hatfield applies both macroeconomic insight and sector-level expertise to fund oversight. 

Tax And Cost-Advantaged Portfolio Construction 

The ETF structure offers potential tax and cost efficiencies because, within the structure, securities are generally not sold to raise cash to meet redemptions. Instead, an "in-kind" mechanism allows the ETF to meet 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. That is typical of active management in ETFs and mutual funds. The ability to be able to rebalance is important, and ICAP rebalances its index every fiscal quarter.

Covered Calls 

The fund employs a selective option writing strategy and modest leverage (typically 15-30%) to enhance income while retaining upside market exposure.

Top Holdings 

The top 10 holdings of ICAP as of Feb. 24, according to ICAP’s fund page, are: McDonald’s, Amazon, Global Net Lease, Citizens Financial Group, Toll Bros., Marvell Technologies, Lennar Corp., NextEra Energy, Philip Morris International and Apollo Global Management.

This fund is designed for investors seeking both price return and income and for investors who want that from an equity position.

The recent dividend track record for the fund, according to the fund page, is the following per share for a one-year holding:

01/29/2026: $0.24

12/30/2025: $0.28

11/26/2025: $0.21

10/30/2025: $0.21

09/29/2025: $0.21

Generating Income In 2026

While the Fed was divided at last check, lower benchmark rates would reduce the yield advantage of government debt, potentially prompting investors to reassess the balance between risk-free securities and other income-generating assets. In such a scenario, the competitive landscape for yield would shift, altering the relative appeal of equity-based income strategies – shining a spotlight on ICAP. 

If you’re interested in learning more about ICAP and why it may deserve consideration for your portfolio, click here to get started.

Featured image from Shutterstock.

This content was originally published on Benzinga. Read further disclosures here.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.