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Small-Cap Companies Can Offer Promise Of High Returns, But How Does One Find Winners Given The Risks Involved? A Look Inside Infracap's SCAP ETF

Published 08/04/2024, 18:00
Updated 08/04/2024, 19:10
© Reuters.  Small-Cap Companies Can Offer Promise Of High Returns, But How Does One Find Winners Given The Risks Involved? A Look Inside Infracap's SCAP ETF

Benzinga - by Johnny Rice, Benzinga Staff Writer.

Small-cap companies are often overlooked by institutional and retail investors alike. They lack the sheen and popularity of the big names and often carry higher-than-average risk. Still, this volatility-related risk can be mitigated with a smart, active and well-diversified investing approach, and the returns can be lucrative.

That is exactly what the team at Infrastructure Capital Advisors aims to do with its InfraCap Small Cap Income ETF (NYSE:SCAP). The fund invests in a diverse set of small-cap companies seeking "above average yield" and "total return through a blended approach of capital appreciation and current income."

An Active Approach

Tax Benefits

Performance

iShares Morningstar Small-Cap ETF

Holdings SCAP has 69 holdings, making it more targeted than many of its passive competitors. The fund's top ten holdings make up 38.2% of the fund.

SCAP's current 5 largest holdings are as follows:

  • iShares Russell 2000 ETF (NYSE:IWM) – 14.20% of the fund – This ETF is passively benchmarked to the Russell 2000 Index.
  • MKS Instruments Inc (NASDAQ:MKSI) – 3.13% of the fund – MKS is a supplier of technologies critical for semiconductor manufacturing.
  • Chord Energy Corp (NASDAQ:CHRD) – 2.96% of the fund – Chord is an energy exploration company operating in the Williston Basin of North Dakota and Montana.
  • GoDaddy Inc (NYSE:GDDY) – 2.94% of the fund – GoDaddy is a technology company providing domain registry and web hosting services.
  • Herc Holdings Inc (NYSE:HRI) – 2.88% of the fund – Herc is a construction and industrial equipment rental company.
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    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Read the original article on Benzinga

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