The ETFs you trust now designed with an income advantage
Investors want certain income in an uncertain world
The path of interest rates is unclear, leaving investors unsure whether traditional sources of income can meet their needs.
In the midst of uncertainty, investors are seeking reliable income as well as the growth potential of equities.
Introducing
QQCI and EQLI
You need income. We have options. Built on the foundation of QQC and EQL, these ETFs are designed to provide total return through current income and long-term growth of capital.
QQCI
Invesco NASDAQ 100 Income Advantage ETF
The latest addition to the QQC Innovation Suite: Income
Like QQC, QQCI tracks the Nasdaq-100® Index, but it’s also designed to provide consistent monthly income and maintain growth potential — all with less volatility and downside risk mitigation.
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Built to provide consistent monthly income
QQCI utilizes an options income strategy that pays a distribution similar to a coupon along with a return that’s tied to the performance of an underlying equity investment.
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Invest in innovative companies
QQCI delivers exposure to Nasdaq-100® companies at the forefront of transformative, long-term innovations such as augmented reality, cloud computing, big data, mobile payments, streaming services, electric vehicles, and more.
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EQLI
Invesco S&P 500 Equal Weight Income Advantage ETF
Equal weight with an added advantage: Income
Like EQL, EQLI tracks the S&P 500 Equal Weight Index, but it’s also designed to provide consistent monthly income and maintain growth potential —all with less volatility and downside risk mitigation.
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Built to provide consistent monthly income
EQLI utilizes an options income strategy that pays a distribution similar to a coupon along with a return that’s tied to the performance of an underlying equity investment.
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Equal exposure to all the market’s possibilities
EQLI invests equally in all 500 stocks of the S&P 500 Index. This classic strategy for eliminating market concentration means you’re never underexposed to the market’s possibilities.
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Frequently asked questions
An option is a financial instrument that gives the option holder the right, but not the obligation, to buy or sell a set quantity or dollar value of a particular asset at a fixed price by a certain date. Options are a useful instrument for generating income outside of more traditional means, like collecting dividends on stocks or interest on bonds.
When an investor sells an option, they’re giving the buyer the ability to buy or sell a specific asset by a certain date at a predetermined price. In return, the seller collects an option premium from the buyer, which is considered income. Option income strategies can be an effective way of generating a steady stream of monthly income while maintaining exposure to equities.
The income generated from options has a different set of sensitivities and drivers than income from bonds or dividend-paying stocks. For example, traditional bond exposures have interest rate risk. Equity options avoid interest rate risk. Instead, the yield from selling equity options is impacted by the implied equity market volatility. When equity market volatility is high, option premiums will increase and push the yields higher.
Option income strategies can be designed in a number of different ways. In the case of QQCI and EQLI, we use equity-linked notes to efficiently execute a tailored option income strategy designed to generate a steady income stream for investors. We partner with several reputable global banks who execute our customized option strategy.
Invesco and its subsidiaries have deep expertise in managing ETFs, In the US QQQ launched in 1999 establishing the standard for investing in innovation. Over 20 years ago, RSP helped reinvent how clients access the S&P 500. And we’ve managed option overlay strategies for multi-asset portfolios since 2018.
Footnotes
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1
Effective August 15, 2024 through February 28, 2025, Invesco Capital Management LLC (the “Adviser”) will voluntarily waive 100% of its management fee, 0.34% for QQCI and EQLI. The Net Expense Ratio for the funds through February 28, 2025 is 0.00%
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2
In the capital structure, bonds rank above equities and would be prioritized over equities in the event of a default. ETFs would not be reimbursed. Options strategies accept a growth limit should the contracts be called.
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Important information
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.
Most Invesco ETFs seek to replicate, before fees and expenses, the performance of the applicable Index, and are not actively managed. This means that the Sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the Index regardless of whether the financial condition of one or more issuers of securities in the Index deteriorates. In contrast, if an Invesco ETF is actively managed, then the Sub-advisor has discretion to adjust that Invesco ETF’s holdings in accordance with the ETF’s investment objectives and strategies.
Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. The views and opinions expressed are those of the authors at the time of publication, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. There is no guarantee that these views will come to pass.
Commissions, management fees and expenses may all be associated with investments in mutual funds and exchange-traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.invesco.ca.
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S&P 500® Equal Weight Index, are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Invesco Capital Management LLC and its sublicensees (collectively, the “Licensees”)
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An investment cannot be made into an index.
INVESTORS PLEASE NOTE: The information on this site does not constitute a recommendation or any investment strategy or product for a particular investor. Investors should consult their financial advisor before making any investment decisions.
