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AI Powers New Texas ETF, But Income Has a Catch
14 Oct
Summary
- Westwood's PWRX ETF launched September 17, 2026, on the Texas Stock Exchange.
- The ETF uses covered calls, generating income but capping potential gains.
- Demand for power is rising due to AI, data centers, and industrial reshoring.
The Westwood Salient Enhanced Power & Infrastructure ETF (PWRX) debuted on September 17, 2026, marking the first new ETF launch on the Texas Stock Exchange. This actively managed fund targets increasing power demand fueled by AI, data centers, and industrial reshoring.
PWRX seeks total return through a blend of income generation and capital appreciation. It invests across the power ecosystem, including traditional energy, utilities, grid infrastructure, and data-center components.
The fund employs a covered call strategy to produce monthly income. This approach involves selling the right to buy its holdings at a set price, with the premium serving as income. Westwood acknowledges this strategy caps potential upside gains if the underlying stock prices rise significantly above the strike price.
Westwood Holdings Group, the Dallas-based asset manager, has introduced PWRX as part of its Enhanced Income Series, which includes other income-focused ETFs. The utility sector, represented by the State Street Utilities Select Sector SPDR ETF (XLU), has shown uneven performance, with recent declines but strong long-term gains.
