Investors are facing a murky interest rate environment heading into 2027, with the Federal Reserve's next move unclear. Inflation remains above target, unemployment is at a healthy 4%, and economists are split on whether a rate hike is needed to tame rising prices. The war in Iran and tariffs are cited as factors, while the White House would prefer new Fed chair Kevin Warsh to keep rates steady or cut them. This uncertainty is adding to market volatility, leaving income-seeking investors searching for stable returns.
Historically, if the Fed raises rates, cash investments like savings accounts and new bonds pay more income, but older bonds and growth stocks could suffer. If rates stay steady, the stock market might stabilize, but cash earnings stop growing. In such an unpredictable market, an actively managed ETF can adjust on the fly to help keep income flowing without taking on extra risk.
That's the approach of the Infrastructure Capital Bond Income ETF (NYSE: BNDS), which aims to maximize income with a secondary objective of capital appreciation. The fund invests at least 80% of its total assets in fixed-income securities, primarily corporate bonds, focusing on sectors and issuers with strong cash flows and pricing power. The management team uses a flexible mix of quantitative and qualitative analysis to evaluate relative value opportunities, then applies fundamental analysis to assess issuers' financial health and ability to service debt.
What sets BNDS apart is its active management, which allows it to opportunistically employ an option-writing strategy to enhance income. While high-yield bond funds can be volatile, the fund's managers believe that adding options into the mix can translate volatility into higher premiums for option sellers, providing an additional source of income. Distributions are monthly, and the fund had a 30-day SEC yield of 8.01% as of September 9, 2026.
Actively managed ETFs like BNDS may gain importance when market volatility and uncertainty are high. While individual investors can build their own portfolios, that requires time, knowledge, and skill—all of which the team at Infrastructure Capital can provide. BNDS is structured to seek asymmetric income-generating opportunities, and the firm's decades of experience help it identify what to look for and what pitfalls to avoid.
At the helm is Jay D. Hatfield, founder, CEO, and portfolio manager of Infrastructure Capital Advisors. With nearly three decades of experience across investment banking, hedge fund management, and portfolio construction, Hatfield has focused on income-generating securities and companies tied to real assets like energy infrastructure and real estate. Before launching Infrastructure Capital, he co-founded NGL Energy Partners and managed income-oriented portfolios at SAC Capital (now Point72) and Zimmer Lucas Partners. His background in identifying undervalued credit opportunities and structuring strategies to extract reliable cash flows translates into a disciplined approach to corporate bond selection, combined with tactical enhancements like option writing.
For investors seeking to maximize income with the help of options and seasoned professionals, BNDS may be worth considering. To learn more, click here.
*Infrastructure Capital Advisors expects to declare future distributions on a monthly basis. Distributions are planned, but not guaranteed, for every month. For more information about each Fund's distribution policy, its 2026 distribution calendar, or tax information, please visit each Fund's web site for more information.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please call 800-617-0004 or visit https://infracapfund.com/bnds for performance data current to the most recent month end.
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