Invesco Ltd, a leading global asset management firm, has officially announced the launch of Invesco Income Advantage Suite, which expands upon the company’s ETF platform by layering an options income strategy over two of its most well-known and high demand investment offerings. According to certain reports, the stated solution manages Invesco QQQ Income Advantage ETF (QQA) and Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA) to effectively combine the equity exposure of an index-tracking product with a consistent and high monthly yield. You see, both QQA and RSPA are unique in their goals to offer reliable income and market participation, as well as a diversified option income overlay. Such a mechanism allows for a balance of yield and growth with a focus on long-term total returns. Talk about all the attributes that an ETFs in the Invesco Income Advantage suite will bring forth, the answer begins from the availability of seasoned experts who will leverage their proven systematic active experience in managing the option overlay to work alongside the world’s largest manager of NASDAQ-100 and S&P 500 Equal weight ETFs that manage the passive equity portfolios. Next up, there is a specialized product design which can come in handy when attempting to generate attractive yields, long-term growth of investor capital, and achieve less volatility than benchmark indices.
“Income Advantage ETFs are designed for investors who want the same innovative exposure as QQQ and RSP with the addition of consistent income and risk mitigation, untethered to Fed action or interest rate oscillation,” said John Burrello, Senior Portfolio Manager for the Income Advantage Suite at Invesco. “Our existing experience as long-term stewards of consistent income and performance will be applied with our full focus in the new ETFs.”
Moving on, the ETF in question also seems to have a focus upon distributing potentially tax-advantaged monthly income, instead of capital gains or return of capital. Hold on, we are not done yet, considering we still haven’t acknowledged the promise of yield and beta profile consistency, something markedly delivered at your disposal without any leverage whatsoever. Another detail worth a mention here is concerned with the ETF’s highly diversified options portfolio, which on its part, is frequently laddered as per market conditions. Not just that, it should also continuously allow for more upside market participation than existing less diversified covered call ETFs.
Among others things, it ought to be said that Invesco has designed QQA and RSPA to suit investors who want to participate meaningfully in coretrusted equity indice with less volatility and downside risk, while simultaneously earning attractive and consistent monthly income. Hence, to ensure maximum accessibility, Invesco will waive fees of QQA and RSPA until December 31, 2024. This, in turn, will bring the total expense ratio of each ETF from 29 basis points to 0 basis points with the discretion to extend the fee waiver further.
At launch, QQA and RSPA will join the Invesco QQQ Innovation Suite and Invesco Equity Index Custom SMAs to offer optionality and variations of its existing product offerings, all for the purpose of helping investors reach their best possible investment outcomes.
“We see the intersection of Invesco’s largest ETF franchise and income-oriented investments as a major area of investor demand and a primary focus for our US Wealth Management division over the next year. It reflects our commitment to delivering exceptional client service and successful financial outcomes” said John McDonough, Head of Americas Distribution at Invesco. “Our dedicated and experienced distribution team is fully equipped to educate clients about our newly launched income strategies, ensuring they understand how it can help their income goals and objectives.”
