Advisor Pours $23 Million Into an 8.7% Yield Play After Cutting Two Other ETFs

On January 21, Ergawealth Advisors, Inc. disclosed it bought 976,948 additional shares of the First Trust BuyWrite Income ETF (NASDAQ:FTHI), an estimated $23.10 million transaction based on quarterly average pricing.

What happened

In a filing with the U.S. Securities and Exchange Commission dated January 21, Ergawealth Advisors, Inc. reported purchasing 976,948 shares of the First Trust BuyWrite Income ETF (NASDAQ:FTHI). The estimated transaction value was $23.10 million based on the average closing price for the quarter ended December 31. Meanwhile, the quarter-end value of the position rose by $22.97 million, which includes both new purchases and changes in share price.

What else to know

FTHI now represents 22.8% of the fund’s 13F reportable AUM.

Top holdings as of December 31:

• 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, 2026, shares of FTHI were priced at $23.59, up about 1% over the past year; however, the fund’s yield stood at 8.7% as of January 21.

ETF overview

ETF snapshot

• FTHI’s investment strategy centers on generating income by holding U.S. equity securities and writing covered call options on the S&P 500 Index.
• The portfolio consists primarily of U.S.-listed equities combined with a laddered series of at-the-money to slightly out-of-the-money call options with expirations under one year.
• Structured as an exchange-traded fund, FTHI provides investors with a liquid vehicle for income generation; expense ratio details are available in regulatory filings.

The First Trust BuyWrite Income ETF (FTHI) is designed to deliver enhanced income by combining equity exposure with a systematic covered call writing strategy on the S&P 500 Index. The fund's approach seeks to capture equity market upside while generating consistent option premium income, appealing to investors seeking yield with equity participation.

What this transaction means for investors

After trimming exposure to dividend growth and capital strength strategies earlier in the quarter, this fund leaned hard into income certainty. The result is a concentrated allocation to a buy-write strategy that now sits at nearly a quarter of reported assets.

That concentration is telling. Covered call ETFs trade upside for cash flow, and at a moment when equity markets have delivered uneven returns, prioritizing income over pure appreciation can be a deliberate risk-management choice rather than a retreat. With shares hovering around $23.60 and a distribution rate near 8.7%, the math works for investors looking to smooth returns without exiting equities altogether.

Zooming out, the broader portfolio reinforces that framing. Core growth exposure remains through diversified equity holdings, but the balance has shifted toward strategies designed to monetize volatility rather than chase it. Writing calls on a large-cap benchmark limits runaway upside, but it also turns market churn into monthly cash flow. That tradeoff looks intentional, especially after reducing positions that rely more heavily on continued equity multiple expansion.

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.