Curated News
By: NewsRamp Editorial Staff
October 09, 2026
Small-Cap Income ETF SCAP Offers Growth and Yield Beyond Tech
TLDR
- SCAP offers a competitive edge by targeting above-average yield from small-cap stocks, potentially outperforming large-cap income options.
- SCAP invests at least 80% in small-cap income stocks, writes options, and uses modest leverage to generate yield.
- SCAP helps investors earn income and growth from small companies, supporting broader economic development and financial well-being.
- Small-cap stocks like those in the Russell 2000 are up 13% in 2026, showing that growth can come from lesser-known companies.
Impact - Why it Matters
As investors grapple with rising interest rates and market volatility, the search for reliable income and growth outside traditional tech and real estate intensifies. Small-cap stocks, often overlooked by Wall Street, provide a compelling alternative, with indices like the Russell 2000 and S&P SmallCap 600 showing strong year-to-date gains. The Infrastructure Capital Small Cap Income ETF (SCAP) taps into this trend, offering a professionally managed portfolio that targets above-average dividend yields from small-cap companies. For income-focused investors, SCAP presents a way to diversify away from large-cap concentration while potentially capturing the growth of younger companies. Given the uncertain rate environment, such a strategy could help buffer portfolios against swings and provide steady cash flow for reinvestment. This news matters because it highlights a viable avenue for investors to adapt to changing market conditions and pursue both income and growth in a segment that is frequently under-researched.
Summary
With the Federal Reserve expected to continue raising interest rates later this year amid stubborn inflation and persistent market volatility, investors are increasingly looking beyond tech and real estate toward small-capitalization stocks. These smaller companies often outperform when investors seek bargains and can offer growth potential as they are earlier in their business cycles. The Russell 2000 Index, made up of 2,000 small-cap U.S. companies, is up 13% year-to-date as of Oct. 5, with industrials, financials, and energy driving most of the interest, while the S&P SmallCap 600 is up nearly 15% over the same period. Small-cap stocks aren’t just for growth—they can also generate income, with some dividend payers potentially outshining large-cap yields, offering a rare mix of regular income and growth potential.
For investors seeking this combination, the Infrastructure Capital Small Cap Income ETF (NYSE: SCAP) provides a solution. This actively managed fund aims for above-average yield by investing at least 80% of its net assets in an income-oriented portfolio of small-cap stocks. It is run by Infrastructure Capital Founder, CEO, and Portfolio Manager Jay D. Hatfield, who brings nearly thirty years of financial markets experience. The fund targets sectors such as aerospace and defense, homebuilding, casinos and gaming, regional banks, and mortgage REITs. As of the end of June, the 30-day SEC yield was 4.08%, and the ETF has an expense ratio of 2.20%. Hatfield’s team uses internal price targets, selective option writing, and modest leverage to generate additional income while retaining upside potential.
Ultimately, SCAP offers investors the opportunity to gain exposure to small-cap companies earlier in their growth cycles, with potential upside relative to market expectations due to less research coverage. With interest rates possibly rising and volatility here to stay, small-cap income stocks can be particularly attractive. To learn more about SCAP and get started investing, click here.
Source Statement
This curated news summary relied on content distributed by NewMediaWire. Read the original source here, Small-Cap Income ETF SCAP Offers Growth and Yield Beyond Tech
