Infrastructure Capital has launched a new actively managed high-yield bond exchange-traded fund (ETF) designed to provide investors with income and potential capital appreciation in an uncertain economic landscape. The Infrastructure Capital Bond Income ETF (BNDS) differentiates itself through a dynamic investment strategy that adapts to changing market conditions.
The ETF, managed by Infrastructure Capital's founder Jay D. Hatfield and portfolio manager Andrew Meleney, will primarily invest in corporate bonds while maintaining the flexibility to allocate up to 20% of its assets to equities. The fund's managers employ a comprehensive approach, analyzing global macroeconomic factors such as inflation, interest rates, and economic growth to guide investment decisions.
AllianceBernstein research suggests high-yield bonds can perform similarly to equities, with historically low default rates averaging less than 3% over the past 30 years. By actively managing the portfolio, BNDS aims to capitalize on these opportunities while mitigating potential risks.
The ETF's investment strategy focuses on identifying fixed-income securities trading at a discount and demonstrating strong potential for total return. Key selection criteria include companies with competitive market positions, stable profits, and robust cash generation capabilities. Current holdings include diverse sectors such as financials, REITs, utilities, and technology.
For investors seeking alternative income strategies in a complex financial environment, BNDS offers a sophisticated approach to high-yield investing that prioritizes strategic flexibility and comprehensive market analysis.
