ICAP: INFRASTRUCTURE CAPITAL EQUITY INCOME ETF
ETF Education Report: Infrastructure Capital Equity Income ETF (ICAP)
What this ETF is trying to do
The Infrastructure Capital Equity Income ETF (ICAP) is an exchange-traded fund listed on the NYSE. While the specific investment goal isn't detailed in the data, the name and holdings suggest it focuses on equity income. This means it holds various companies and aims to provide regular payments to investors.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This only measures how much the share price itself has changed.
• Total Return: This includes both the change in share price *and* the money paid out through distributions.
For ICAP, the numbers show:
• Year-to-Date (YTD): The price return is approximately 1.58%, while the total return is higher at about 8.92%.
• One-Year: The price return is approximately 1.10%, while the total return is about 12.00%.
• Three-Year: The price return is approximately 23.43%, while the total return is about 63.30%.
The current price is $28.22. An estimated price from roughly one year ago was approximately $27.91.
Income and distribution explanation
This ETF is known for its distributions, which are the cash payments made to shareholders. The distribution yield is approximately 10.17%. This means the amount of cash paid out is quite high relative to the ETF's price. These payments usually happen monthly, and over the last 12 months, there were 12 payouts.
It is important to remember that a high distribution yield does not mean the investor earned that same percentage as their total return. You must look at the "total return" figure to see the full picture of how the investment performed including those payments.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink over time. However, ICAP has an erosion-risk score of 94, which is labeled as "Stable / sideways," and an erosion severity of "good." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this list is partial):
• NVIDIA CORP: 7.34%
• ALPHABET INC CLASS A: 7.05%
• BROADCOM INC: 6.55%
• MARVELL TECHNOLOGY INC: 5.84%
• LOCKHEED MARTIN CORP: 4.87%
• KKR & CO INC ORDINARY SHARES: 4.64%
• D.R. HORTON INC: 4.25%
• LENNAR CORP CLASS A: 3.97%
• AMAZON.COM INC: 3.85%
• META PLATFORMS INC CLASS A: 3.83%
Pros
• The ETF has a high distribution yield of approximately 10.17%.
• The total returns over one and three years have been higher than the price-only returns.
• The erosion-risk score suggests a stable profile.
Cons
• The price return (the change in share price) is much lower than the total return, meaning most of the gains come from distributions rather than the stock price going up.
Beginner takeaway
When you see an ETF with a high distribution yield, always check the total return. The price of the shares might move very little, but the total return tells you how much you actually gained when you include the cash payments.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 7.48% |
| 2 | ALPHABET INC CLASS A | GOOGL | 7.02% |
| 3 | BROADCOM INC | AVGO | 6.36% |
| 4 | MARVELL TECHNOLOGY INC | MRVL | 5.97% |
| 5 | LOCKHEED MARTIN CORP | LMT | 4.83% |
| 6 | KKR & CO INC ORDINARY SHARES | KKR | 4.56% |
| 7 | D.R. HORTON INC | DHI | 4.19% |
| 8 | LENNAR CORP CLASS A | LEN | 3.94% |
| 9 | AMAZON.COM INC | AMZN | 3.89% |
| 10 | META PLATFORMS INC CLASS A | META | 3.78% |