Infrastructure Capital (ICA) has announced the launch of the Infrastructure Capital Nasdaq Option Income ETF (QVOL), a new exchange-traded fund listed on the Nasdaq. QVOL aims to provide investors with high monthly income and capital appreciation through a strategy that actively manages both equity and option positions, focusing on companies within the Nasdaq Composite Index.
Unlike traditional buy-write funds that systematically write options on an index, QVOL employs a dynamic approach. The fund selectively writes call options on Nasdaq equities or indexes, targeting companies believed to be overvalued, while using short-duration options to limit upside caps. This strategy is designed to allow QVOL to capture greater market upside compared to competitors that rely on systematic, long-duration option writing. The fund seeks to generate annual premiums from option activity, offering high monthly income without sacrificing capital appreciation potential.
QVOL’s equity portfolio is actively constructed using quantitative and qualitative analysis, including relative value indicators. The fund has the flexibility to select investments across the entire Nasdaq Composite Index, which is highly correlated with the Nasdaq-100 Index. The top holdings of the Nasdaq Composite substantially overlap with the Nasdaq-100, providing exposure to major tech companies such as the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla). This broader exposure allows QVOL to seek undervalued opportunities beyond the largest names.
Infrastructure Capital’s investment process emphasizes discipline, consistency, and risk management. When selecting equities, ICA favors companies with favorable relative valuations, such as lower price-to-book ratios or higher profitability compared to their peers. The team considers factors like enterprise value, capital ratios, and operating metrics. The sell discipline includes excessive valuation, changes in fundamental position, or better opportunities elsewhere.
QVOL is the latest addition to ICA’s ETF lineup, which includes funds like the Infrastructure Capital Bond Income ETF (BNDS) and the Infrastructure Capital Small Cap Income ETF (SCAP). Jay Hatfield, CFA, serves as lead portfolio manager, bringing over 30 years of experience. ICA manages more than $3.5 billion in total assets as of the launch date.
Investors should consider the investment objectives, risks, and expenses before investing. A prospectus is available at InfraCap Funds or by calling 800-617-0004. The fund is distributed by Quasar Distributors, LLC.
