With the Federal Reserve's next move on interest rates uncertain, investors are weighing the implications for their portfolios. Inflation remains above the Fed's target, and unemployment is at a healthy 4%, yet economists and some Fed governors are split on whether a rate hike will be enough to tame rising prices, pointing to geopolitical tensions and tariffs rather than underlying economic issues. Meanwhile, the White House would prefer new Fed chair Kevin Warsh to keep rates steady or even cut them, though the odds of a cut were already slim when the Fed met on September 15 and 16. This uncertainty is fueling market volatility and putting income-seeking investors on edge.
Historically, if the Fed raises rates, cash investments like savings accounts, money market funds, and new bonds pay more income, but older bonds and growth stocks could take a hit. If the Fed keeps rates steady, the stock market might stabilize, but cash earnings stop growing. In such an unpredictable environment, an actively managed ETF can adjust on the fly to help keep income flowing without taking on extra risk.
That is 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 across fixed-income markets, then applies fundamental analysis to issuers, reviewing enterprise value, capital ratios, and operating metrics to assess 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, especially amid Fed uncertainty, 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 has a 30-day SEC yield of 8.01% as of September 9, 2026.*
While actively managed ETFs may seem like a rare find in the age of self-directed investing, they can gain increasing importance when market volatility and uncertainty are high. Individual investors can do their own research and build a portfolio, but that requires time, knowledge, and skill—all of which the team at Infrastructure Capital can take care of. BNDS is structured to seek and extract asymmetric income-generating opportunities, and because the financial services provider commands decades of experience, it knows what to look for and what pitfalls to avoid.
At the helm of BNDS 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 consistently 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. That deep background matters: Infrastructure Capital reports that Hatfield's career has been defined by identifying undervalued credit opportunities and structuring strategies to extract reliable cash flows. For BNDS, this translates into a disciplined approach to corporate bond selection, combined with tactical enhancements like option writing.
Current times can feel uncertain, especially regarding the Fed's next move on interest rates. Investors can go it alone, but if they want to maximize their income strategy with the help of options and do it with seasoned, experienced professionals in an affordable and efficient manner, then BNDS may be worth checking out. To learn more about the Infrastructure Capital Bond Income ETF (BNDS), 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.
