InfraCap Small Cap Income ETF (SCAP US) – Portfolio Construction Methodology

The investment process steering the actively managed InfraCap Small Cap Income ETF targets total return from U.S. small-capitalization securities while emphasizing current income (USD). Under normal conditions the fund invests ≥80% of net assets in small caps (at purchase within/below Russell 2000’s range) via common and preferred stock, convertibles, corporate debt, equity-linked notes, and ETFs; it may also hold REITs, utilities, commodity-related businesses, and MLPs. Selection blends top-down macro with quantitative/qualitative and relative-value analysis, often favoring lower relative price and/or higher profitability traits; preferreds trading above call with low/negative yield-to-call are typically avoided. The adviser may write and purchase puts/calls, employ total-return swaps, and engage in short sales (aggregate shorts capped at 20% of net assets) to manage risk and seek opportunities; typical leverage usage is 5–15% of net assets. Turnover can be high; rebalancing is thesis- and risk-driven rather than calendar-based.

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