Invesco builds three options ETFs around annual income targets

Invesco has built three Income Advantage ETFs around stated annual income objectives rather than relying solely on fluctuating options premiums, Lili Jiang, head of ETF specialists at Invesco, said at VettaFi's Market Outlook Symposium, ETF Trends reported.

Each fund pairs a core index exposure with a customized options overlay designed to target monthly income distributions, and QQA keeps Nasdaq-100 exposure while generating income. Jiang said the lineup is structured around specific annual income objectives, which she said gives investors and financial advisors a more defined framework for income generation.

For advisors assembling income sleeves, an annual target is a fixed number to check against actual distributions. Jiang cast that structure as a more defined framework for income generation than options premiums alone.

Jiang said the funds write both calls and puts and trade options on individual days rather than only in monthly cycles. Writing puts alongside calls, she said, adds flexibility to navigate volatility across different market conditions, and day-level trading lets portfolio managers respond more dynamically as markets move.

QQA was the fund Jiang singled out as drawing considerable interest from investors who want to keep Nasdaq-100 exposure while adding income, a pitch aimed at buyers weighing concentrated technology and AI leadership in the index. The three funds were discussed on the panel "Modern Income Solutions: Leveraging AI and Hedged Equity Strategies," where Jiang appeared with VettaFi senior industry analyst Kirsten Chang.