Strategic ETF Inflow
Kovack Advisors Significantly Increases Stakes Across Diverse ETFs, Mirroring Institutional Interest
Key Points
In HEQT, Kovack Advisors reported owning 1.85% of the fund at quarter-end, after buying 196,509 shares valued at about $6.298 million (i.e., the filing shows not just the increase, but Kovack’s fund-level ownership share).
For RDVY, Kovack’s Form 13F stated it held 150,525 shares after the purchase of an additional 37,526 shares, and that the stake was about 0.05% of the ETF—adding a precise post-trade position size and fund ownership percentage beyond the value change.
In SPMO, Kovack reported 286,372 shares after acquiring 48,553 more, and the stock represented approximately 1.7% of Kovack’s holdings and was its 7th largest position—more specific portfolio context than “top position for the firm.”
Other investors’ filings show large contemporaneous additions in the same ETFs, such as Keudell Morrison Wealth Management buying a new HEQT position valued at about $16.574 million, indicating broad institutional demand beyond Kovack’s trades.
Similarly in SPMO, Goldman Sachs Group Inc. bought a new stake during the 1st quarter valued at about $18.9 million (and other firms also increased holdings), reinforcing that the momentum strategy ETFs drew multiple large institutional entrants.
Kovack Advisors Inc. bought 196,509 shares of the Simplify Hedged Equity ETF (HEQT) in the first quarter of 2026, a stake worth about $6.3 million, according to MarketBeat. The Fort Lauderdale-based wealth manager now owns 1.85% of the fund — a notable conviction bet on hedged equity during a period of rising inflation and geopolitical turbulence.
The purchase was just one of several large moves. Kovack also lifted its position in the Invesco S&P 500 Momentum ETF (SPMO) by 20.4% to roughly $34.2 million, making it the firm's 7th largest holding, per HedgeFollow. Concurrent filings from Goldman Sachs and Keudell Morrison Wealth Management show Kovack was not alone — institutional demand for factor-based ETFs surged across the board.
Kovack's Biggest Bets Span Five Factor ETFs
Kovack's Form 13F, filed May 12 with the SEC, reveals a sweeping reallocation into factor-tilted funds. Its iShares MSCI USA Quality Factor ETF (QUAL) position surged 445.5% to about $6.3 million. Its First Trust Enhanced Short Maturity ETF (FTSM) stake jumped 265.5% to roughly $4.1 million. The First Trust Rising Dividend Achievers ETF (RDVY) grew 33.2% to about $10.5 million, with Kovack now holding 150,525 total shares, according to Stockcircle.
The SPMO position stands out most. Kovack holds 286,372 shares after buying 48,553 more. At $34.2 million, it represents roughly 1.7% of the firm's entire portfolio. That is a large single-ETF bet for any wealth manager — let alone one using primarily fee-based client accounts.
Other Big Institutions Piled Into the Same Funds
Kovack was far from the only buyer. Keudell Morrison Wealth Management, a regional advisory firm in Salem, Oregon, opened a brand-new HEQT position worth about $16.6 million in the same quarter, per MarketBeat. That is nearly three times Kovack's HEQT stake — a remarkable "conviction buy" for a regional firm.
In SPMO, Goldman Sachs entered with a new stake worth about $18.9 million, according to HedgeFollow. Multiple other institutions also increased holdings in the momentum ETF during Q1. The pattern is clear: large and small money managers moved in the same direction at the same time.
Why Institutions Are Ditching the Old 60/40 Playbook
The shift reflects a broader anxiety about traditional portfolios. Stocks and bonds have moved together in 2026 — both falling during stress events — making the classic 60/40 split less useful as a hedge. Inflation hit 4.2% in May, its highest level in three years, per Portfolio Adviser. That has pushed managers toward "defined outcome" vehicles like HEQT, which uses a put-spread collar strategy to limit losses without fully exiting stocks.
The Federal Reserve, led by Chair Kevin Warsh, held rates at 3.50%-3.75% in April with a "higher for longer" signal. That environment makes short-maturity ETFs like FTSM attractive — they earn yield without the price risk of long bonds. Meanwhile, SPMO's 21% rise in Q1 shows momentum strategies have rewarded investors who stayed in equities but picked selectively.
HEQT's Collar Strategy Draws New Fans Amid Volatility
Simplify Asset Management's HEQT uses a "laddered collar" — options contracts staggered across three months — to smooth out the bumps of rebalancing. The result: the fund has closely tracked S&P 500 returns while absorbing far less downside during sharp selloffs. Morningstar analysts have given it a "Neutral" to "Positive" Medalist Rating for its role as a volatility dampener, according to Morningstar.
For firms like Kovack, HEQT is not about beating the market. It is about staying in the game. With geopolitical shocks — including the blockage of the Strait of Hormuz and a new 10% global tariff — rattling broad indices, hedged equity products have gone from niche tools to mainstream institutional staples in just a few quarters.
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