The Small-Cap Rotation Is Here: How Income Investors Can Participate Through SCAP

Infrastructure Capital Advisors599 FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe Russell 2000 Index surged 5.4% in January 2026, roughly quadrupling the S&P 500 Index’s 1.4% gain over the same period.On valuation alone, small caps trade at nearly a 31% discount to large caps on a forward price-to-earnings basis.SCAP has delivered a 15.84% annualized return since inception (12/11/2023) and a 9.94% one-year return as of early March 2026, with a year-to-date gain of 4.54%.SCAP’s structure attempts to resolve that tension by pairing active stock selection in the small-cap universe with a distribution policy designed to grow over time. sankai/iStock via Getty Images After years of playing second fiddle to mega-cap technology stocks, small-cap equities have staged a decisive breakout. The Russell 2000 Index* (RTY) surged 5.4% in January 2026, roughly quadrupling the S&P 500* Index’s (This article was written byInfrastructure Capital Advisors599 FollowersFollowInfrastructure Capital Advisors ("Infrastructure Capital") is a leading provider of investment management solutions designed to meet the needs of income-focused investors. Jay Hatfield is CEO and CIO of the investment team. Mr. Hatfield is the lead portfolio manager of the InfraCap Small Cap Income ETF (NYSE: SCAP), InfraCap Equity Income Fund ETF (NYSE: ICAP), InfraCap MLP ETF (NYSE: AMZA), Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA), InfraCap REIT Preferred ETF (NYSE: PFFR), and a series of private accounts. Infrastructure Capital frequently appears on or is quoted in Fox Business, CNBC, Barron's, The Wall Street Journal, Yahoo Finance, TD Ameritrade Network, and Bloomberg Radio/TV.

The team at Infrastructure Capital publishes a monthly market and economic report, quarterly commentaries, investing primers, and asset class and strategy research. In addition, Infrastructure Capital hosts a monthly webinar and attends industry conferences in an effort to provide educational investing resources.