Infrastructure Capital Advisors has launched the Infrastructure Capital Bond Income ETF (BNDS), providing investors with a strategic approach to corporate bond investing in 2025. The new exchange-traded fund aims to maximize current income and pursue capital appreciation through a diversified fixed-income portfolio.
The ETF, managed by veteran investment professionals Jay D. Hatfield and Andrew Meleney, will primarily invest in corporate bonds, with potential allocations to municipal and government bonds. Up to 20% of the fund may also be invested in equities, offering investors a flexible investment strategy.
Current market conditions appear favorable for corporate bond investments. Investment-grade corporate bonds currently offer average yields of 5.6%, and the spread between corporate bonds and Treasury securities has narrowed to nearly a twenty-year low, indicating reduced market risk.
Hatfield emphasized the importance of active management in income investing, noting that the fund will use both quantitative and qualitative analysis to identify undervalued fixed-income securities. The strategy considers factors such as term premium, credit premium, liquidity, industry, and market capitalization.
The launch comes at a time when investors are seeking reliable income streams amid high inflation, historically low stock market yields, and anticipated interest rate cuts. By offering an actively managed approach to corporate bond investing, Infrastructure Capital Advisors aims to provide investors with a potentially attractive alternative in the current financial landscape.
