Advisor’s Shift: Income Over Expansion

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Ergawealth Advisors, Inc. has, with a characteristic lack of fanfare, increased its holding in the First Trust BuyWrite Income ETF (FTHI +0.55%) by 976,948 shares. The transaction, valued at approximately $23.10 million based on recent quarterly averages, represents a significant repositioning of funds. It is a move that deserves scrutiny, not for its scale, but for what it implies about the current assessment of market realities.

The purchase brings Ergawealth’s allocation to FTHI to 22.8% of its reported 13F assets. This is not a mere adjustment; it is a statement. The fund, which employs a covered call strategy on the S&P 500, is, in essence, a device for trading potential capital gains for a predictable income stream. To concentrate so heavily on such a strategy suggests a diminished expectation of robust market appreciation.

A review of Ergawealth’s portfolio reveals a recent trimming of holdings in dividend growth and capital strength strategies. The logic is straightforward. When growth is uncertain, and the pursuit of capital gains appears increasingly speculative, the investor seeks the solace of a regular, if modest, return. This is not necessarily a sign of pessimism, but of a pragmatic recalibration.

As of January 21, 2026, FTHI shares were priced at $23.59, with a one-year return of approximately 1%. However, the fund’s yield stood at 8.7%. The numbers, while unremarkable in isolation, tell a clear story. The investor is willing to forgo the possibility of significant gains in exchange for a dependable income. It is a strategy that appeals to those who prioritize preservation of capital over the pursuit of exponential growth.

Here’s a breakdown of Ergawealth’s current holdings:

  • NASDAQ: FTHI: $49.54 million (22.8% of AUM)
  • NYSEMKT: CGGR: $31.96 million (14.7% of AUM)
  • NYSEMKT: CGDV: $26.30 million (12.1% of AUM)
  • NYSEMKT: CGMM: $21.60 million (9.9% of AUM)
  • NYSEMKT: CGUS: $15.88 million (7.3% of AUM)

The mechanics of FTHI are simple enough. The fund holds U.S. equities while simultaneously writing covered call options. This generates income from the premiums received, but caps potential upside. It is a trade-off that, in the current climate, appears increasingly rational. The fund’s expense ratio, details of which are available in regulatory filings, is a necessary consideration, but hardly a prohibitive one.

The broader picture is this: Ergawealth is shifting from a portfolio geared towards capturing market momentum to one designed to withstand its uncertainties. The reduction in growth-oriented holdings, coupled with the increased allocation to FTHI, suggests a belief that the era of easy gains is over. The investor is not necessarily predicting a market crash, but is acknowledging that the path to prosperity will likely be more arduous and less predictable. This is not a dramatic prediction, but a quiet acknowledgement of a changing landscape.

The fund’s AUM currently stands at $1.87 billion, with a price of $23.59 and a TTM yield of 8.7%. The one-year total return is 9.7%. These figures, taken together, paint a portrait of a fund that is not designed to generate spectacular returns, but to provide a steady, reliable income stream. It is a strategy that, in an age of volatility and uncertainty, may prove to be surprisingly resilient.

The move by Ergawealth is not a triumph of brilliance, nor a harbinger of doom. It is simply a pragmatic adjustment to changing circumstances. And in a world awash in speculation and hype, a little pragmatism is a welcome sight.

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2026-01-23 14:33