Fee waiver brings QQA and RSPA management fee to zero
ATLANTA, July 17,
2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a
leading global asset management firm, announced today that it will
expand its active ETF platform by layering an options income
strategy over two of its most well-known and high demand investment
offerings. The launch of the Invesco Income Advantage Suite
seeks to add consistent yield to the Nasdaq 100 Index and S&P
500 Equal Weight Index offering investors another way to access
these two innovative strategies.
Actively managed Invesco QQQ Income Advantage ETF (QQA)
and Invesco S&P 500 Equal Weight Income Advantage ETF
(RSPA) aim to combine the equity exposure of an index-tracking
product with a consistent and high monthly yield. QQA and RSPA are
unique in their goals to offer reliable income and market
participation, and a diversified option income overlay, allowing
for a balance of yield and growth with a focus on long-tern total
returns.
"Invesco has a broad and deep range of expertise across
equities, fixed income, and alternative management. Today's launch
is another example of how we can infuse our high-quality active
management into a variety of vehicles to deliver strategies that
meet our clients' needs," says Doug
Sharp, Senior Managing Director, Head of the Americas and
EMEA.
Invesco has been a pioneer in active ETFs for over 15 years,
leveraging its active investment capabilities within the ETF
wrapper. It is our belief that we have just entered the investor
inflection point for active ETFs, and this offers a renewed
opportunity for growth of our $25
billion AUM actively managed ETFs and "actively powered"
index-tracking strategies.
"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," says John
Burrello, Senior Portfolio Manager for the Income Advantage
Suite. "Our existing experience as long-term stewards of
consistent income and performance will be applied with our full
focus in the new ETFs."
Design details matter in the growing and varied options-based
income ETF category. The ETFs in the Invesco Income Advantage
suite will be the only ETFs that offer all the following
attributes:
- Seasoned experts with proven systematic active experience in
managing the option overlay, combined with the world's largest
manager of NASDAQ-100 and S&P 500 Equal weight ETFs managing
the passive equity portfolios.
- A product design created for attractive yields, long-term
growth of investor capital, and less volatility than benchmark
indices.
- A focus on distributing potentially tax-advantaged monthly
income, not capital gains or return of capital.
- Consistency of yield and beta profile, without leverage.
- Highly diversified options portfolio, frequently laddered
according to market conditions, and should continuously allow for
more upside market participation than existing less diversified
covered call ETFs.
Invesco designed QQA and RSPA to suit investors who want to
participate meaningfully in core, trusted equity indices, but with
less volatility and downside risk, while earning attractive and
consistent monthly income. Consistency of yield and market
participation are both crucial elements for investors to trying to
decide how the Income Advantage ETFs might fit into their
portfolio.
"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.
"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."
Invesco will waive fees of QQA and RSPA until December 31, 2024, effectively bringing the total
expense ratio of each ETF from 29 basis point to 0 basis points
with the discretion to extend the fee waiver further.
QQA and RSPA will join the Invesco QQQ Innovation Suite and
Invesco Equity Index Custom SMAs to offer optionality and
variations of our existing product offerings to help investors
reach their best possible investment outcomes.
To view the prospectus for Invesco QQQ Income Advantage ETF
(QQA) and Invesco S&P 500 Equal Weight Income Advantage ETF
(RSPA), please click on the links below:
- Invesco QQQ Income
Advantage ETF (QQA)
- Invesco S&P 500 Equal
Weight Income Advantage ETF (RSPA)
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is
a global independent investment management firm dedicated to
delivering an investment experience that helps people get more out
of life. With offices in more than 20 countries, our distinctive
investment teams deliver a comprehensive range of active, passive
and alternative investment capabilities. Invesco managed US
$1.7 trillion in assets on behalf of
clients worldwide as of March 31,
2024. For more information, visit
www.invesco.com/corporate.
There are additional risks involved in writing (selling) covered
call options. The Fund, by writing covered call options on the
Index, will give up the opportunity to benefit from potential
increases in value of the index stocks above the exercise prices of
the options, but will continue to bear the risk of declines in the
value of the Index. The Fund will be subject to capital gain taxes,
ordinary income tax and other special tax considerations due to its
writing covered call options strategy.
Shares are not individually redeemable and owners of the Shares
may acquire those Shares from the Funds and tender those shares for
redemption to the Fund in Creation Unit aggregations only,
typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000,
80,000, 100,000, 150,000 or 200,000 Shares.
Not a Deposit; Not FDIC Insured; Not Guaranteed by the Bank; May
Lose Value; Not Insured by any Federal Government Agency
Invesco Distributors, Inc. is the U.S. distributor for Invesco
Ltd.'s products and is a wholly owned, indirect subsidiary of
Invesco Ltd.
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Contact: Stephanie Diiorio,
stephanie.diiorio@invesco.com, 212.278.9037
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SOURCE Invesco Ltd.