This is an active income ETF that does not track a specific index. Instead, the fund manager hand-picks dividend-paying companies. It adds an option-selling strategy to a stock selection process that weighs growth and valuation together, which boosts income.

It suits investors who prioritize regular monthly income and can accept the stock-selection risk that comes with active management.

The ETF is actively managed by Infrastructure Capital.

The fund focuses on dividend-paying large-cap stocks and selects holdings by setting price targets that consider both growth potential and price-to-earnings ratios. It then adds a selective option-selling (covered call) strategy and a modest level of leverage. The aim is to keep some upside potential while raising income.

• Active stock selection rather than simple index tracking
• Enhanced income through covered calls combined with modest leverage

Assets under management (AUM) stand at $113.6M, and the expense ratio is 2.47% per year.

Because there is limited data on directly comparable listed ETFs in the same category, it is best to understand the fund mainly through its structural features as an active income strategy.

As a high-dividend income asset, the fund tends to move with interest rates and stock market swings. The key point to watch is whether it keeps up steady monthly distributions, rather than short-term price moves.

While the high-rate environment persists, income demand from investors seeking stable cash flow is translating into broader interest in covered call and active dividend strategy ETFs.

High income and active stock selection are its strengths, but the upside cap from the option strategy and leverage risk deserve attention.

There are currently not enough comparison ETFs automatically matched by our system to the same category, so direct peer comparison data is limited. Still, an income ETF that combines a dividend-stock focus with an option-selling strategy is a common approach among covered call products. When looking for products with the same income goal, it helps to compare the dividend stock weighting, the intensity of the option strategy, and whether leverage is used.

Before investing in ICAP, it is important to first understand its structure, which combines active management with an option strategy. You can review the items below to check whether it fits your investment style.

The option-selling strategy can partly limit gains in a rising market, and modest leverage can deepen losses in a falling market. Because the fund is actively managed, you should also consider the performance variation that can result from the manager's stock selection judgment.

It is an option worth considering for investors who want monthly income and active stock selection at the same time, but the upside cap from the option strategy and the leverage risk should be checked before investing.