ICA Boosts ETF Dividends as Financial Literacy Gap Costs Americans Billions

NEW YORK, NY – December 29, 2025 – Infrastructure Capital Advisors (ICA), a New York-based investment firm, announced a significant dividend increase for three of its income-focused exchange-traded funds (ETFs), delivering welcome news to shareholders seeking regular income streams. The move, however, casts a spotlight on the growing divide between the sophisticated financial products available to informed investors and the stark reality of financial illiteracy plaguing the nation.

The firm revealed increased monthly distributions for its Infrastructure Capital Small Cap Income ETF (SCAP), Infrastructure Capital Equity Income ETF (ICAP), and Infrastructure Capital Bond Income ETF (BNDS). This enhancement in shareholder payouts comes at a time when new data reveals that a lack of financial knowledge costs the average American adult nearly $1,000 annually, contributing to a multi-billion-dollar drag on the U.S. economy.

A Boon for Income-Focused Investors

For current shareholders, the announcement from Infrastructure Capital Advisors is unequivocally positive. The firm, which manages over $2 billion in assets, specializes in investment solutions designed for income generation, often focusing on infrastructure-related sectors like energy, real estate, and utilities.

The specific distribution increases are substantial:
* Infrastructure Capital Small Cap Income ETF (SCAP): The monthly dividend will rise by 17%, from $0.205 to $0.240 per share. This equates to an annualized distribution of $2.88 per share.
* Infrastructure Capital Equity Income ETF (ICAP): Shareholders will see a nearly 41% increase in their monthly payout, which jumps from $0.205 to $0.2891 per share, representing a $3.4692 annualized distribution.
* Infrastructure Capital Bond Income ETF (BNDS): The bond-focused fund’s distribution will see a modest increase from $0.334 to $0.3378 per share, resulting in an annualized payout of $4.0536.

These new distributions will be paid on December 31, 2025, to shareholders of record as of the close of business on December 30, 2025.

The ETFs are actively managed, with firm founder and CEO Jay D. Hatfield serving as the lead Portfolio Manager. SCAP, for instance, pursues total return by investing in U.S.-listed small-cap companies that management believes offer both income and value. Its strategy involves a mix of common stocks, preferred stocks, and debt instruments within the market capitalization range of the Russell 2000 Index. This kind of specialized strategy is designed to generate alpha, or market-beating returns, for those who understand its objectives and associated risks.

The Other Side of the Coin: A $246 Billion Problem

While ICA’s investors celebrate enhanced returns, a recent national survey paints a sobering picture of the financial health of the broader American populace. A 2025 study from the National Financial Educators Council (NFEC) found that U.S. adults self-reported losing an average of $948 during the year simply due to a lack of personal finance knowledge. When extrapolated across the country's 260 million adults, this amounts to a staggering estimated national cost of over $246 billion.

The findings highlight a persistent and damaging knowledge gap. According to the survey, which polled 1,200 individuals, nearly half of all respondents (48.6%) believed they lost more than $500, and a significant portion (14.6%) estimated their losses exceeded $2,500.

This self-reported monetary loss is corroborated by other major studies that measure financial comprehension directly. The TIAA Institute-GFLEC Personal Finance Index for 2025 showed that U.S. adults could correctly answer only 49% of its financial literacy questions, a level that has remained stubbornly stagnant for years. Similarly, a 2024 study by the FINRA Investor Education Foundation found that only 27% of Americans could correctly answer five out of seven fundamental financial knowledge questions. This points to a widespread inability to grasp core concepts like risk diversification, inflation, and compound interest—the very principles that underpin products like ICA's ETFs.

From Individual Loss to National Economic Drag

The consequences of this financial illiteracy epidemic extend far beyond individual bank accounts, creating significant headwinds for the entire U.S. economy. The lack of financial skills is a key contributor to several troubling macroeconomic trends.

Household debt, for example, has climbed to record levels, reaching $17.94 trillion in the third quarter of 2024. Within that, credit card balances have surged past $1.13 trillion, with millions of consumers struggling under the weight of high-interest payments they may not fully understand.

Perhaps most alarming is the impact on long-term security. An estimated 31% of non-retired American adults have no retirement savings whatsoever. This lack of preparation creates a looming crisis, suggesting that a large segment of the population will be unable to support themselves in their later years, placing a greater strain on social safety nets. The disparity is particularly sharp along educational lines, with only 37% of those without a college degree holding a retirement account, compared to 80% of college graduates.

A Growing Call for Education as a Solution

In response to these alarming statistics, a powerful movement is underway to embed financial education into the American school system. As of late 2025, 29 states now mandate a stand-alone personal finance course for high school graduation, a dramatic increase from just eight states in 2020. This legislative push recognizes that providing foundational knowledge early is critical to equipping the next generation with the skills to navigate an increasingly complex financial world.

States like California and Texas have recently joined this trend, passing laws that will make personal finance a graduation requirement in the coming years. When these mandates are fully implemented, nearly two-thirds of all U.S. students will have access to this crucial instruction.

Alongside policy changes, technology is playing a pivotal role in bridging the knowledge gap. A new wave of mobile apps and digital platforms utilizes gamification and artificial intelligence to make learning about budgeting, saving, and investing more accessible and engaging. Workplace financial wellness programs are also becoming a standard offering, as employers recognize that improving their employees' financial health can boost productivity and reduce stress. The dual landscape of finance—one of opportunity for the knowledgeable and one of peril for the uninformed—underscores the urgency of these efforts to foster a more financially capable and resilient society.