Ergawealth Advisors Builds Significant Position in First Trust BuyWrite Income ETF, According to Recent SEC Filing
Key Points
Ergawealth Advisors, Inc purchased 270,130 shares; estimated trade size $6.37 million (based on quarterly average price)
Quarter-end FTHI position value increased by $4.79 million (reflects valuation shift, including price movement)
Trade value represented 2.82% of the fund’s reportable U.S. equity AUM
Post-trade stake: 2,367,488 shares valued at $54.33 million
FTHI now accounts for 24.02% of Ergawealth’s reportable AUM, which places it outside the fund's top five holdings
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What happened
According to a filing with the Securities and Exchange Commission dated April 27, 2026, Ergawealth Advisors, Inc. increased its position in First Trust BuyWrite Income ETF (NASDAQ:FTHI) by 270,130 shares. The quarter-end value of this stake rose by $4.79 million, reflecting both trading activity and market price changes.
What else to know
This FTHI purchase now accounts for 24.02% of Ergawealth Advisors, Inc.’s reportable U.S. equity AUM as of March 31, 2026.
Top holdings after the filing:
- NYSEMKT:CGGR: $30.80 million (13.6% of AUM)
- NYSEMKT:CGDV: $26.97 million (11.9% of AUM)
- NYSEMKT:CGMM: $23.32 million (10.3% of AUM)
- NYSEMKT:CGGO: $16.27 million (7.2% of AUM)
- NYSEMKT:CGUS: $16.25 million (7.2% of AUM)
As of April 26, 2026, shares of First Trust BuyWrite Income ETF were priced at $23.61, up 20.6% over the past year.
ETF overview
| Metric | Value |
|---|---|
| Price (as of market close April 24, 2026) | $23.61 |
| Dividend yield | 8.99% |
| 1-year total return | 20.64% |
ETF snapshot
The First Trust BuyWrite Income ETF invests broadly in U.S. equities and enhances portfolio returns through options premiums, distributing income to shareholders on a monthly basis. The ETF focuses on income generation using a systematic covered call strategy on the S&P 500 Index, which is designed to attract investors seeking high yield and moderate participation in the equity market.
The ETF’s portfolio is composed primarily of U.S.-listed equity securities spanning all market capitalizations, with up to 20% of assets allocated to covered call option strategies.
What this transaction means for investors
The First Trust BuyWrite Income ETF (FTHI) uses a covered-call strategy to generate income by holding U.S. equities and writing call options on the S&P 500 Index. This approach allows the fund to collect option premiums alongside dividends, creating a stream of income that is tied not just to the underlying stocks but also to options pricing.
That structure leads to a distinct return profile. The ETF can benefit from option premiums, particularly when volatility supports higher pricing, and may hold up relatively well in flat or moderately rising markets. However, selling calls limits participation in strong equity rallies, which is a key reason the ETF can lag broad market benchmarks during periods of sustained upside.
For investors, The First Trust BuyWrite Income ETF offers a trade-off between income generation and full market participation. While the strategy aims to deliver income from dividends and option premiums, it sacrifices some potential gains during sharp equity advances. As a result, its performance is shaped as much by options dynamics as by stock market direction, making it a different type of equity allocation than a traditional index fund.
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Eric Trie 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.
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