Invesco QQQ Income Advantage ETF(NASDAQ:QQA)

QQA 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 Nasdaq-100 Index, which is comprised of the 100 largest, non-financial companies in the US based on market cap. For its options-based component, QQA 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, QQA 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.