Capital Strength ETF Trimmed by $7.5 Million After Underperforming in 2025

On January 21, Ergawealth Advisors, Inc. disclosed in an SEC filing that it sold 81,378 shares of the First Trust Capital Strength ETF (NASDAQ:FTCS), an estimated $7.52 million transaction based on quarterly average pricing.

What happened

According to an SEC filing dated January 21, Ergawealth Advisors, Inc. reduced its position in the First Trust Capital Strength ETF (NASDAQ:FTCS) by 81,378 shares. The estimated value of the shares sold was $7.52 million, calculated using the average closing price over the fourth quarter. The fund's remaining stake at quarter’s end totaled 40,140 shares worth $3.71 million.

What else to know

The sale left FTCS at 1.71% of 13F reportable AUM as of December 31.

Top holdings after the filing:

• 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)

As of January 21, FTCS shares were priced at $96.10, up 7% over the past year and trailing the S&P 500 by about 7 percentage points.

ETF overview

ETF snapshot

• FTCS’s investment strategy focuses on tracking an index of well-capitalized companies and REITs with strong market positions, aiming for stability and long-term performance.
• The portfolio primarily consists of common stocks and REITs, with at least 90% of assets invested in these underlying holdings.
• Structured as an exchange-traded fund, FTCS offers investors exposure to a diversified basket of U.S. equities.

The First Trust Capital Strength ETF (FTCS) is a large, passively managed ETF with a market capitalization of $8.05 billion as of January 21. The fund seeks to provide investors with access to companies demonstrating strong balance sheets and market leadership, aiming to deliver consistent returns with lower volatility. Its disciplined investment process and focus on capital strength position it as a core equity holding for investors seeking stability and long-term growth potential.

What this transaction means for investors

In a year when equity markets rewarded momentum and selective risk-taking, capital parked in defensive equity strategies increasingly had to justify its place, and that might be what motivated this sale.

FTCS still screens for companies with strong cash positions, low leverage, and subdued volatility, and it manages roughly $8.1 billion in assets with a long track record of delivering steadier returns. But steadiness can become a drawback when the broader market is compounding much faster. Over the past year, the fund gained about 7%, trailing the S&P 500 by roughly the same margin.

What makes the sale more telling is how it fits into the rest of the portfolio. This fund also exited SDVY and reduced exposure to FTCS while leaning further into FTHI, which tilts toward income and higher-yielding equity exposure. That rotation suggests less interest in volatility suppression and more appetite for return per unit of capital deployed.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.