Mitigating downside risk

Title: Mitigating downside risk

Description: Investors seeking to maintain stock exposure, while generating consistent income that can help offset market losses, may want to consider option income ETFs.

While the phrase “this time is different” is often a red flag for investors, 2025 truly does mark a break from the past two years. Markets are grappling with shifting global trade dynamics, stubborn inflation, and policy uncertainty, resulting in periods of elevated volatility. This market backdrop can be challenging for both growth- and income-seeking investors.

ETF flow trends suggest investors may be turning to option income ETF strategies to maintain equity exposure and generate income that can help offset market downside. And while there are many option income ETFs to choose from, they’re not all created equal.

Invesco’s Income Advantage ETFs, QQA, RSPA, and EFAA, were thoughtfully designed for investors seeking consistent income alongside equity market exposure, with less volatility. In down markets, the option income offsets some of the losses and may help investors de-risk their equity allocations.

Each fund provides differentiated equity exposure combined with a systematic active option overlay designed to provide a more consistent income and market participation profile to help weather various market environments. QQA provides exposure to the Nasdaq-100 index with a systematic active option income overlay, RSPA targets the S&P 500 Equal Weight Index, and EFAA brings the same income-enhancing approach to international developed markets.   

All three ETFs aim to provide investors with: Frequent monthly income distributions, downside risk mitigation relative to the referenced index, as the option income offsets some of the losses during market drawdowns, and constant equity market participation, however, you may give up a portion of the market’s upside in return for the options premium.

For investors seeking alternative ways to maintain equity exposure while generating consistent monthly income that can help offset market losses, the Invesco Income Advantage ETFs offer a compelling option.

Learn more about QQA, RSPA, EFAA, and other related ETF insights in the featured products and resources section below this video.

Important information 

Not a Deposit    Not FDIC Insured    Not Guaranteed by the Bank    May Lose Value    Not Insured by any Federal Government Agency

Past performance is not a guarantee of future results. An investment cannot be made into an index.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The opinions expressed are those of Invesco, 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 are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

Securities held by the Fund are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in the Fund’s portfolio. Additionally, natural or environmental disasters, widespread disease or other public health issues, war, military conflicts, acts of terrorism, economic crises or other events could result in increased premiums or discounts to the Fund’s net asset value (“NAV”).

The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

While the Fund is actively managed, a substantial portion of the Fund’s portfolio is designed to track the performance of the Index. In managing this portion of the Fund’s portfolio, the portfolio managers will not generally buy or sell a security unless that security is added or removed, respectively, from the Index, regardless of the performance of that security. If a specific security is removed from the Index, the Fund may be forced to sell such security at an inopportune time or for a price lower than the security’s current market value.

In general, equity values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.

Investments in ELNs are susceptible to the risks of their underlying instruments, which could include management risk, market risk and, as applicable, foreign securities and currency risks. ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying instruments move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An ELN investment is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt and the Fund may not be repaid the principal amount of, or income from, its investment. ELNs may also be less liquid than more traditional investments and the Fund may be unable to sell ELNs at a desirable time or price. In addition, the price of ELNs may not correlate with the underlying securities or a fixed income investment.

Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.

Risks of futures contracts include: an imperfect correlation between the value of the futures contract and the underlying commodity; possible lack of a liquid secondary market; inability to close a futures contract when desired; losses due to unanticipated market movements; obligation for the Fund to make daily cash payments to maintain its required margin; failure to close a position may result in the Fund receiving an illiquid commodity; and unfavorable execution prices.

A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Short sales may cause an investor to repurchase a security at a higher price, causing a loss. As there is no limit on how much the price of the security can increase, exposure to potential loss is unlimited.

The Fund is non-diversified and may experience greater volatility than a more diversified investment.

The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.

The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund's investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.

The Fund is subject to numerous market trading risks, including the potential lack of an active market, losses from trading in secondary markets, and disruption in the creation/redemption process. During stressed market conditions, Shares may become less liquid as result of deteriorating liquidity which could lead to differences in the market price and the underlying value of those Shares.

QQA

Information Technology Sector Concentration - Investments focused in a particular sector, such as information technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

RSPA and EFAA

Because the Fund may invest in other investment companies, it's subject to the risks associated with the investment company and its investment performance may depend on the underlying investment company's performance. The Fund will indirectly pay a proportional share of the investment company's fees and expenses, while continuing to pay its own management fee to the Adviser, resulting in shareholders absorbing duplicate levels of fees.

EFAA

The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

The performance of an investment concentrated in issuers of a certain region or country is expected to be closely tied to conditions within that region and to be more volatile than more geographically diversified investments.

ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies. ADRs and GDRs may not track the price of the underlying securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.

Currencies and futures generally are volatile and are not suitable for all investors.

Shares are not individually redeemable, and owners of the Shares may acquire those Shares from the Fund 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, or 150,000 Shares.

Invesco Distributors, Inc.              5/25                  NA 4434204