Core Viewpoint - The article discusses the importance of building a high-income portfolio that not only focuses on high-yielding assets but also emphasizes wealth preservation and growth over time [2]. Group 1: Investment Strategy - Building a high-income portfolio requires identifying opportunities that align with the market's risk-return tradeoff while also growing the capital base [2]. - The article aims to educate readers on both recognizing new investment opportunities and warning against misleading ones [2]. Group 2: Analyst Background - The author has nearly two decades of experience in various financial roles, including technical trading, fintech research, and finance writing, supported by advanced degrees in economics and finance [2].

Core Insights - The third quarter of 2025 saw a significant expansion in ETF portfolios among independent financial advisors, with the average RIA now holding about 72 ETFs, an increase from 69 in the previous quarter [2] - More than half of RIAs increased their investment strategies, while less than 20% reduced their ETF lists, indicating a growing acceptance of ETFs and cryptocurrencies as essential portfolio components [2] ETF Adoption Trends - The report highlights that RIAs are experimenting with various types of ETFs, with Ethereum-based ETFs gaining notable traction, surpassing Bitcoin in popularity during this quarter [3] - Income- and derivative-based ETFs also experienced growth, with NEOS Investments seeing increased RIA engagement, while cryptocurrency and commodity funds led the additions [3][6] Notable ETF Additions - Significant additions included SLV and GLD, which were added by 133 and 116 firms respectively, and Ethereum, incorporated by 199 RIAs [3] - Thematic ETFs focusing on defense, industrial, and AI sectors also gained substantial adoption [3] Fee Structures and Adoption - High-fee ETFs, despite industry-wide fee compression, continued to attract RIAs, with the Virtus InfraCap US Preferred Stock ETF (PFFA) seeing a 16% increase in RIA adoption despite its 2.48% expense ratio [4] - The report suggests that early adoption of various ETF categories may normalize these options across the advisor spectrum [5]