The Texas Stock Exchange Has Its First New ETF. Its Power Bet Also Sells Calls

Westwood Holdings Group (NYSE:WHG), a Dallas-based asset manager, launched the Westwood Salient Enhanced Power & Infrastructure ETF (TXSE:PWRX) on September 17, 2026. It was the first new ETF to launch on the Texas Stock Exchange. While other funds had already moved their primary listings to the venue, PWRX is the first fund to debut there.

Built around rising electricity demand, the fund targets total return through a combination of income and capital appreciation. WHG’s PWRX incorporates covered calls, offering a yield component for investors targeting income from the energy sector while still maintaining meaningful upside participation.

How PWRX Targets the Power Buildout

PWRX is actively managed, so a team picks the holdings instead of tracking an index. Westwood says the fund invests “across the power ecosystem, from traditional energy and utilities to grid infrastructure, data-center infrastructure and next-generation energy technologies.” Westwood’s Houston-based energy team runs it, and the fund seeks total return through a mix of income and capital appreciation.

Westwood Holdings Group says that after nearly two decades of flat electricity demand, the U.S. is entering an era of faster-growing power needs driven by AI, data centers, and industrial reshoring (we pulled together seven companies providing that expansion, from power to cooling, in a free report you can grab here).

Income in Addition to Appreciation

PWRX pairs a high-conviction stock portfolio with a systematic covered call overlay designed to generate monthly income.

WHG’s fund owns shares and sells another investor the right to buy them at a set price, called the strike price. The buyer pays a fee, called a premium, and that premium becomes the fund’s income.

The fund’s own risk disclosure spells out the cost. WHG warns: “While this strategy can generate income, it limits potential upside gains if the stock price rises significantly above the strike price of the option.”

The case for PWRX depends on a boom in power demand, but the fund’s structure limits how much of that boom a shareholder keeps in exchange for monthly cash. That trade-off is a deliberate design choice.

The release also lists concentration risk, options and flex options risk, counterparty risk, portfolio turnover risk, and MLP risk. MLPs are a partnership structure common among pipeline companies.

Westwood Adds to an Established Income Lineup

PWRX joins Westwood’s Enhanced Income Series alongside the Westwood Salient Enhanced Midstream Income ETF (NYSEARCA:MDST), the Westwood Salient Enhanced Energy Income ETF (NYSEARCA:WEEI), and the Westwood Enhanced Income Opportunity ETF.

WHG’s site describes PWRX as newly formed with a limited operating history. Specific fund information can be found in the factsheet here.

What Plain Utility Exposure Has Done Lately

For background on the sector, look at the State Street Utilities Select Sector SPDR ETF (NYSEARCA:XLU), the established utilities fund, which had more than $23 billion in net assets as of June 30, 2026. PWRX has a different objective and no track record, so treat these numbers as sector context rather than a comparison. XLU traded at $41.52 on October 12, 2026.

XLU’s price return is -0.72% year-to-date, -2.59% over one month, and -5.71% over one year. Over five years, it’s up 48.89%, and over ten years, it’s up 142.16%.

Weak recent returns paired with strong long-term gains show how uneven utility performance has been.

Why Westwood Picked Texas

In the announcement, Westwood CEO Brian Casey cited the exchange’s market maker program and trading technology. Market makers are firms that constantly post buy and sell quotes to keep trading orderly.

Texas Stock Exchange Chairman and CEO James H. Lee presented the debut as evidence that funds are launching on the venue as well as transferring to it. He said the exchange is “proud to partner with Westwood to launch the first new ETF on TXSE.”

Trading on a newer venue comes with some practical considerations. Westwood’s site suggests using limit orders, which cap the price you pay, instead of market orders.

Considering the Income Trade-Off Before the First Distribution

WHG structured PWRX for exposure to growing power demand with an added focus on income over unlimited upside. In a long rally in power and infrastructure stocks, the call overlay hands part of any big gain to the option buyers.

The next things to watch for are the fund’s distributions.

Contact [email protected] for any questions or corrections.