Invesco announced on July 17 that it has expanded its active ETF platform by layering an options income strategy over two of its most well-known ETFs: the Invesco QQQ Trust and the Invesco S&P 500 Equal Weight ETF.
The Invesco Income Advantage Suite debuted on July 17 with the launch of the Invesco QQQ Income Advantage ETF and the Invesco S&P 500 Equal Weight Income Advantage ETF. The new ETFs will seek to offer investors the equity exposure of an index-tracking product combined with a consistent and high monthly yield, Invesco said in a news release.
The Invesco QQQ Income Advantage ETF has the ticker symbol QQA, while the Invesco S&P 500 Equal Weight Income Advantage ETF goes by the ticker symbol RSPA.
“We have a really, really long history in the active ETF space,” Doug Sharp, senior managing director and head of the Americas and EMEA at Invesco, said in an interview, adding that Invesco has been managing active ETFs for more than 15 years.
“And it just feels to us like we have reached this inflection point in terms of demand for active capabilities wrapped in the ETF wrapper,” he said. “And so fundamentally, why are we launching these strategies today? It’s because we hear from clients that they want them.”
The two ETFs that “form the backbone” of the new products — the Invesco QQQ Trust and the Invesco S&P 500 Equal Weight ETF — are “really well known, liked by clients, but (clients) want that additional income,” he said.
The $302 billion Invesco QQQ Trust is known by the ticker symbol QQQ, while the nearly $59 billion Invesco S&P 500 Equal Weight ETF has RSP as its ticker symbol.
"We’re hearing from our clients that … they want to stay invested in (QQQ) and in RSP, but they also are looking for attractive income that’s not reliant on Fed action or interest rate sensitivity," added John Burrello, senior portfolio manager for the Income Advantage Suite.
Invesco is waiving 100% of the 0.29% total expense ratio on each of the two new ETFs until Dec. 31, with discretion to extend the fee waiver further, according to the release.
As of March 31, Invesco had about $1.7 trillion in total assets under management.
