Invesco Actively Managed Exchange-Traded Fund Trus Invesco MSCI EAFE Income Advantage ETF(AMEX:EFAA)

EFAA seeks to generate income and capitalize on market upsides through a mix of equities and options premiums. For its equity portfolio, the fund invests in equity securities and US-listed ETFs that aim to replicate the MSCI EAFE Index, which includes large- and mid-cap stocks in developed markets outside the US and Canada. For its options-based component, EFAA utilizes equity-linked notes (ELNs). These ELNs incorporate covered call and/or cash secured put strategies, designed to provide income and some downside protection to the declines of its equity portfolio. However, this approach introduces counterparty risk. To further manage risks, EFAA holds a substantial portion of its assets in cash or cash equivalents, limiting its exposure to the volatility of the equity market. The Funds manager dynamically adjusts the portfolio based on market conditions to balance yield, performance, and risk. At its launch, the Fund provided a fee waiver to attract investors. Prospective investors should carefully review the associated expenses before investing.