Infrastructure Capital Partners has launched a new income-focused ETF with wider breadth than its existing midstream partnership and REIT ETFs.
The InfraCap Equity Income Fund ETF (ICAP) debuted on the NYSE Arca Wednesday with an expense ratio of 0.80%.
ICAP is an actively managed fund that aims to invest the majority of its assets in dividend-issuing companies. It has no geographic restrictions, but will focus on U.S.-based companies of any market capitalization. It also reserves the right to use derivatives to generate additional income or to hedge against volatility, and can invest up to 20% of its assets in fixed income products.
The firm already has two ETFs on the market under its InfraCap brand name. The $83.5 million InfraCap REIT Preferred ETF (PFFR) has only seen a 2.53% year-to-date return, which is on the lower end of the 0-6% returns generated by other index-based preferred stock ETFs. The actively managed InfraCap MLP ETF (AMZA) has produced 37.6% in returns through the year.