Drake Drops FIXD From Top Holdings With $23.4 Million Sale

Drake & Associates disclosed an SEC filing showing it sold 533,049 shares of First Trust TCW Opportunistic Fixed Income ETF (FIXD) in Q3 2025 for roughly $23.45m, trimming the position to 41,985 shares worth about $1.86m and cutting FIXD to ~0.39% of the fund’s AUM—removing it from the manager’s top-five holdings (a roughly 93% reduction). The disposal, paired with a new large stake in the Putnam Focused Large Cap Value ETF, indicates a tactical rotation away from opportunistic fixed‑income exposure toward equity/value strategies. FIXD, with about $3.4bn AUM, a ~4.3% yield and one‑year total returns that have lagged the S&P 500 materially, makes the reweighting consistent with a search for higher relative returns and a change in client risk positioning.

Analysis

Drake & Associates disclosed in an SEC filing dated Nov. 6, 2025 that it sold 533,049 shares of First Trust TCW Opportunistic Fixed Income ETF (NASDAQ:FIXD) in Q3 2025 for an estimated $23.45 million, trimming its position to 41,985 shares valued at about $1.86 million and reducing FIXD to roughly 0.39% of fund AUM — a ~93% reduction that moved the holding from the fund’s top five to around No. 41.

FIXD is shown with $3.4 billion AUM and a closing price of $44.42 on Nov. 5, 2025 (down 1.4% from the 52-week high); the article reports a one‑year total return of 6% (underperforming the S&P 500 by 12.8 percentage points) while an embedded table lists a 1‑year return of 7.61% and dividend yield figures of 4.28% and 4.37%, indicating inconsistent reported metrics that merit verification.

The ETF’s mandate allocates at least 80% to fixed income and permits up to 35% in lower‑rated corporate, non‑U.S. and non‑agency debt, so performance and price are sensitive to credit and duration moves. The article also notes Drake initiated a large stake in the Putnam Focused Large Cap Value ETF this quarter, signaling a tactical rotation toward equity/value exposure that could reflect a shift in client risk positioning and generate flow-driven headwinds for FIXD.

Key Decisions for Investors

• Reassess exposure to FIXD and similar opportunistic fixed‑income ETFs given the 93% reduction by a major manager and the resulting potential for manager-driven outflows, consider trimming positions until flows and holding reports stabilize
• Verify FIXD performance and yield data (the article shows 6% vs 7.61% one‑year returns and 4.28% vs 4.37% yields) and monitor AUM and daily flows to resolve reporting inconsistencies before making material allocations
• If targeting income, weigh FIXD’s ~4.3% yield against its credit flexibility (up to 35% below‑investment‑grade exposure) and consider hedging credit risk or choosing higher‑conviction income strategies with clearer credit profiles
• Treat Drake’s new large Putnam Focused Large Cap Value stake as a signal of tactical rotation toward equities; consider modest reallocation toward value equities only if it fits your mandate and after evaluating liquidity, tax and relative‑return prospects