By Meg Flippin, Benzinga

DETROIT, MICHIGAN - November 12, 2026 (NEWMEDIAWIRE) - The Federal Reserve left interest rates unchanged during its October meeting, but that doesn’t mean everyone was in agreement. There was dissent among officials, with two Fed officials preferring a quarter-point raise. 

In one camp is the majority of Fed officials who argued it was necessary to hold rates steady to see the cumulative impact of past hikes before acting again. On the other side are the hawkish dissenters, who contend raising rates is necessary to fight persistent inflation. 

Dissent Goes Beyond Fed Meeting 

The dissent doesn’t end with Fed officials, however. The pause in rate actions, which left the Fed’s benchmark federal funds rate in a target range of 3.75% to 4.00%, is expected to be temporary. With inflation rising, many economists and investors expect the Fed to continue to raise rates in the coming months. But by how much and when is up for debate. Investors and economists expect a quarter-point increase in the December meeting. As for what happens in 2027, some are forecasting increases while others are projecting rate cuts. 

Given the current trajectory of monetary policy winds, it's quite possible that financial services provider Infrastructure Capital could be standing on fertile ground. In particular, its income-focused fund called Infrastructure Capital Bond Income ETF (NYSE: BNDS) may see greater interest among investors seeking more robust and reliable total returns.

Looking further, all of that uncertainty creates volatility in the markets and headaches for income-seeking investors invested in passive mutual funds and ETFs. If the Fed’s actions prompt the markets to move one way or another, these investors aren’t able to react quickly. It's the reason actively managed ETFs are having a moment. Actively managed ETFs are attractive to many investors because they allow managers to adjust duration, credit quality and sector exposure in real time without being locked into a passive index. That is especially true for income-seeking investors. With so much uncertainty about what the Fed will do with interest rates, having a fund manager that can take advantage when opportunities arise can protect capital during downturns and capture higher yields when the rate environment changes. 

Active Income With The Infrastructure Capital Bond Income ETF 

Investors get that flexibility with the Infrastructure Capital Bond Income ETF, which is an actively managed ETF whose primary objective is to maximize income, with a secondary objective to extract capital appreciation. BNDS aims to achieve this by investing at least 80% of its total assets in fixed-income securities, mostly corporate bonds. The fund is geared toward sectors and issuers that feature strong cash flows and pricing power. 

When deciding which fixed-income securities to include in the fund, the management team uses a flexible mix of quantitative and qualitative analysis to evaluate relative value opportunities across fixed-income markets. BNDS then applies a layer of fundamental analysis to the issuers themselves, reviewing things like enterprise value, capital ratios and operating metrics to determine the company's financial health and ability to service debt. 

Hands-On Approach From A Veteran Fund Manager 

BNDS is run by Jay D. Hatfield, who is the founder, CEO and portfolio manager of Infrastructure Capital Advisors. Hatfield brings nearly three decades of experience across investment banking, hedge fund management and portfolio construction to BNDS. Before launching Infrastructure Capital, he co-founded NGL Energy Partners and managed income-oriented portfolios at SAC Capital (now Point72) and Zimmer Lucas Partners.

That deep background matters. Infrastructure Capital reports that Hatfield's career has been defined by identifying undervalued credit opportunities and structuring strategies to extract reliable cash flows. For BNDS, this translates into a disciplined approach to corporate bond selection, combined with tactical enhancements like option writing. 

With BNDS, it is structured specifically to find and extract asymmetric income-generating opportunities, and it opportunistically employs an option-writing strategy to enhance income. 

Investors may expect the Federal Reserve to raise interest rates in December, but after that, it's anyone's guess what will happen in the coming months. That creates volatility and thus a potential opportunity for income-seeking investors. While you may not be able to get quick action through a passive ETF that can’t capitalize on movements prompted by Fed action, you can with the Infrastructure Capital Bond Income ETF. To learn more about BNDS, click here. 

Featured image from Shutterstock.

This content was originally published on Benzinga. Read further disclosures here.

This post contains sponsored content and was created in collaboration with a third-party partner. Benzinga is a publisher and does not provide personalized investment advice or act as a broker or dealer. This content is for informational purposes only and is not intended to be investing advice or an offer or solicitation to buy or sell any security. 

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the Fund, please click here. Please read the prospectus carefully before investing. For more information about the Fund, Fund strategies or Infrastructure Capital, please reach out to Craig Starr at 212-763-8336 (Craig.Starr@icmllc.com).

A word about risk:  Investing involves risk, including possible loss of principal. An investment in the Fund may be subject to risks which include, among others, investing in fixed income securities, dividend paying securities, utilities, small-, mid- and large-capitalization companies, real estate investment trusts, master limited partnerships, debt securities, market events, operational, high portfolio turnover, trading issues, active management, fund shares trading, premium/discount risk and liquidity of fund shares, which may make these investments volatile in price.  Small and Medium-capitalization companies, and high yielding equity and debt securities may be subject to elevated risks.  New Fund Risk. The Fund is a recently organized investment company with no operating history prior to the date of this Prospectus. As a result, prospective investors have no track record or history on which to base their investment decision. Debt Securities Risk. Increases in interest rates typically lower the value of debt securities held by the Fund. Investments in debt securities include credit risk. Credit Risk. An issuer of debt securities may not make timely payments of principal and interest and may default entirely in its obligations. A decrease in the issuer’s credit rating may lower the value of debt securities. Interest Rate Risk. Securities could lose value because of interest rate changes. For example, bonds tend to decrease in value if interest rates rise. Derivatives Risk. Derivatives may pose risks in addition to and greater than those associated with investing directly in securities, currencies or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Options Risk. Options transactions involve special risks that may make it difficult or impossible to close a position when the Fund desires. A fund that purchases options, which are a type of derivative, is subject to the risk that gains, if any, realized on the position, will be less than the amount paid as premiums to the writer of the option. Diversification cannot assure a profit or protect against loss in a down market.

BNDS is distributed by Quasar Distributors, LLC.

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