Strength in InfraCap Equity Income ETF's People Pillar is partially offset by an Average Process Pillar rating, leading to a Morningstar Medalist Rating of Neutral. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the highest quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and an underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. Confidence in the strategy's portfolio management drives an Above Average People Pillar rating. To be considered a quality steward, this strategy's parent organization needs to improve factors like a bench of relatively inexperienced portfolio managers; however, it has displayed overall affordable fees. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Morgan Stanley

Goldman Sachs

JPMorgan Chase & Co

Philip Morris

Boston Properties

Chevron

Dow Inc

Bank of America

Southern Company

Citigroup

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. InfraCap Equity Income Fund ETF earns an Average Process Pillar rating. 

The most significant contributor to the rating is the firm's five-year retention rate of 100% over the period. A reasonable level of diversification across individual securities also strengthens the process. The fund's top 10 holdings account for 37% of assets. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

 This strategy tends to hold smaller, more value-oriented companies than its average peer in the Large Value Morningstar Category. Looking at additional factor exposure, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in real estate and utilities relative to the category average by 12.2 and 12.1 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and industrials, underweight the average by 11.8 and 11.7 percentage points of assets, respectively. The portfolio is composed of 83 holdings and is relatively top-heavy. Of the strategy's assets, 37.1% are concentrated within the top 10 holdings, compared to the typical peer's 27.4%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 144% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

InfraCap Equity Income Fund ETF earns an Above Average People Pillar rating. The main contributor to the rating is the combined average five-year excess return of each manager, which shows that the funds they manage have beat an average manager. The stability of the management team also supports the rating. Specifically, the fund has not seen a manager change in the last two years.

Above Average

People

With a two-year track record in the books, InfraCap has not been able to demonstrate that it has a unique value proposition over other asset managers. Consequently, it merits a Below Average Parent rating. InfraCap currently manages two vehicles, with a total of $56.2 million under management and a roster of three fund managers. Unsurprisingly, given its short track record as a firm, the InfraCap management team is also relatively inexperienced, with an average of four years of industry experience.  

 The firm's average net expense ratio across its open-end and exchange-traded product shelf place the firm within the middle quintile of asset managers.  

 To upgrade the firm's rating, InfraCap will be expected to build a consistent track record of positive investor experience.

Below Average

Parent

InfraCap Equity Income Fund ETF

ICAP is actively managed to provide exposure to global stocks that pay dividends during normal market conditions. The fund seeks to maximize income and pursue total return.

NEW YORK--(BUSINESS WIRE)--INFRASTRUCTURE CAPITAL ADVISORS DECLARES ITS MONTHLY DIVIDENDS FOR SCAP AND ICAP.

Infrastructure Capital Advisors Declares Its Monthly Dividends: The InfraCap Small Cap Income ETF (SCAP) and InfraCap Equity Income Fund ETF (ICAP)

InfraCap MLP

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Infrastructure Capital Advisors is targeting small-cap U.S. companies poised to deliver income and growth potential with its latest active ETF. The InfraCap Small Cap Income ETF (NYSE Arca: SCAP) will place a particular emphasis on small-cap equities considered value stocks.

InfraCap Launches Active Small-Cap Income ETF

InfraCap Equity Income Fund ETF and JPMorgan Equity Premium Income ETF have struggled to provide meaningful total returns over the past 4 months. But JEPI has outperformed ICAP by a significant margin, with a 5.28% differential in returns. We examine what worked for JEPI vs ICAP and why we still continue to favor it.

ICAP: Round 2 Goes To JEPI In This Covered Call Battle

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The InfraCap Equity Income Fund ETF ranks near the bottom of Seeking Alpha's 102 Large-Cap Value ETFs, while the SPDR Portfolio S&P 500 Value ETF ranks at the top. This article compares the two ETFs to help investors decide if the Seeking Alpha rankings make sense. ICAP's large exposure to Financials and Real Estate sectors has hurt its performance since the March banking crisis.  That, plus 171bps fee earns ICAP a Sell rating.

ICAP Vs. SPYV: Comparing Large-Cap Value ETFs

JPMorgan Equity Premium Income ETF

ICAP has brought a value dimension to covered call ETFs. The fund boasts of a big yield that has been maintained since inception. The lag vs. its benchmark has been very notable but there are signs that better days might be ahead.

ICAP: 5 Reasons JEPI Did Better And Will Continue To Outperform

ICAP: Strong 9.3% Yield, Risky Holdings, High Expenses.

ICAP: Strong 9.3% Yield, Risky Holdings, High Expenses

The ICAP ETF aims to deliver high current income from a portfolio of dividend paying stocks and call-writing strategies. The fund pays an annualized 8.9% distribution yield.

ICAP: Volatile Macro Bets Detrimental To Returns

Just like JEPI and DIVO, ICAP uses a covered call strategy. Such a strategy results in a low beta profile.

ICAP: Too Volatile For Income Oriented Investors, We Prefer DIVO

Investors tired of pie-in-the-sky tech profits might look for more concrete returns. Infrastructure Capital Advisors' best ETFs offer options.

Tired Of Hit-Or-Miss Tech Stocks? Go For Something More 'Real'

Since inception, ICAP has outperformed JEPI and SPY, and the outperformance is even more pronounced on a YTD basis. ICAP is still just a baby, with just under $46 million of assets under management.

ICAP: An 8.4%-Yielder For Average Joe And Jane

Barings BDC Inc

Enbridge

New York Community Bancorp

Verizon

The Dividend Harvesting Portfolio is now generating $784.43 in annual dividends, yielding 7.5%. The Dividend Harvesting portfolio has a 74.26% record of finishing the week in the black since its inception, 75/101 weeks.

Dividend Harvesting Portfolio Week 100 Update: $10,1k Allocated, $784.43 In Dividends

The market has quickly fallen in love with a double-digit yielding ETF, but we aren't falling for the siren's call. We specialize in identifying high-quality income sources and present the ETF we prefer instead.

Forget JEPI - Buy ICAP Today For Big Income

ICAP has outperformed the market since its inception at the end of 2021 and has mitigated downside risk well throughout the bear market. ICAP has established a track record of generating monthly income and has a forward yield that exceeds 8% based on 2022 dividends.

ICAP: An Underfollowed 8.17% Yielding Income Fund That Outperformed The Market In 2022

NEW YORK--( BUSINESS WIRE )--The InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) (the “Fund” or “ICAP”) is pleased to announce a monthly distribution increase.

Infrastructure Capital Advisors, LLC: InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) Declares Monthly Distribution Increase

NEW YORK--( BUSINESS WIRE )--The InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) (the “Fund” or “ICAP”) has declared a monthly distribution of $0.175 per share ($2.10 per share on an annualized basis). The distribution will be paid on November 28, 2022, to shareholders of record as of the close of business on November 25, 2022.

Infrastructure Capital Advisors, LLC: InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) Declares Monthly Distribution

NEW YORK--(BUSINESS WIRE)--The InfraCap Equity Income Fund ETF (ICAP) has declared a monthly distribution of $0.175 per share ($2.10 per share annualized)

Infrastructure Capital Advisors, LLC InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) Declares Monthly Distribution

NEW YORK--(BUSINESS WIRE)--InfraCap Equity Income Fund ETF declared monthly distribution of $0.175/share, paid July 29 to shareholders of record as of close of business July 27

Infrastructure Capital Advisors, LLC's InfraCap Equity Income Fund ETF (NYSE Arca: ICAP) Declares Monthly Distribution

When the stock market hits a rough patch, it can pay to hide out in dividend stocks. Those cash payouts to shareholders are akin to a vaccine or an underground war bunker.

Dividend Stocks are Paying Off for Income Investors

ICAP is an equity-income fund aimed at providing a high, consistent yield with potential capital appreciation. A traditional value focus can involve seeking stocks with positive earnings per share and programs that return cash to shareholders.

ICAP: A 6.9% Monthly Dividend Yield For Average Joe And Jane

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On this week's episode of ETF Prime, host Nate Geraci is joined by Tom Hendrickson, president of ETF Trends and ETF Database, to discuss how recent geopolitical events are impacting the ETF world and investor behavior. Also joining the episode, Direxion's Dave Mazza offers his perspective on the current market environment and spotlights several thematic ETFs.

News for InfraCap Equity Income Fund ETF ETF (ICAP)