PBP - Invesco S&P 500 BuyWrite ETFAlternative - Hedged Equity
The The Invesco S&P 500 BuyWrite ETF (Fund) is based on the CBOE S&P 500 BuyWrite Index™ (Index). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and will write (sell) call options thereon. The Index is a total return benchmark index that is designed to track the performance of a hypothetical "buy-write" strategy on the S&P 500® Index. The Index measures the total rate of return of an S&P 500 covered call strategy. This strategy consists of holding a long position indexed to the S&P 500 Index and selling a succession of covered call options, each with an exercise price at or above the prevailing price level of the S&P 500 Index. Dividends paid on the component stocks underlying the S&P 500 and the dollar value of option premiums received from written options are reinvested. The Fund and the Index are rebalanced and reconstituted quarterly.
|Index History (%)|
|CBOE S&P 500 BuyWrite Index||-1.13||10.58||6.39||7.06||7.38||4.79|
|S&P 500 Index||-0.04||21.68||14.54||12.37||13.97||9.06|
|Fund History (%)|
|After Tax Held||-1.16||7.78||3.22||4.13||4.16||1.96|
|After Tax Sold||-0.68||6.06||3.34||3.93||4.07||2.18|
|Fund Market Price||-0.98||9.83||5.83||6.32||6.57||3.99|
|Index History (%)|
|CBOE S&P 500 BuyWrite Index||15.68||15.68||7.58||7.00||7.05||4.92|
|S&P 500 Index||31.49||31.49||15.27||11.70||13.56||9.13|
|Fund History (%)|
|After Tax Held||12.73||12.73||4.35||4.05||3.83||2.08|
|After Tax Sold||9.04||9.04||4.22||3.86||3.79||2.27|
|Fund Market Price||15.18||15.18||6.78||6.19||6.22||4.10|
Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.
Growth of $10,000
Data beginning 10 years prior to the ending date of 12/31/2019. Fund performance shown at NAV.
An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|Sector||Percent of Fund|
Market Cap & Style Allocations
as of 02/20/2020 Top Holdings | View All
Fund Holdings subject to change
|Ticker||Company||% of Fund|
|BRK/B||Berkshire Hathaway Inc||1.62|
|JPM||JPMorgan Chase & Co||1.56|
|JNJ||Johnson & Johnson||1.42|
Risk & Other Information
Typically, security classifications used in calculating allocation tables are as of the last trading day of the previous month.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying 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.
Additional risks are involved in writing (selling) covered call options. By writing covered call options on the Index, the Fund will give up the opportunity to benefit from potential increases in the value of the Index 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.
Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Due to its investment strategy and certain federal income tax elections it intends to make, the Fund expects to account for gains or losses on its investments on a daily mark-to-market basis for federal income tax purposes. As a result, the Fund will not be able to designate a portion of its dividends as being eligible for lower rates of tax in the hands of non-corporate shareholders or the dividends received deduction when received by certain corporate shareholders. A significant portion of Fund’s income may be subject to tax at greater rates than if the Fund were engaged in a different investment strategy. You should consult your tax advisor as to the tax consequences of acquiring, owning and selling shares in the Fund.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.
"S&P®," "S&P 500®" and "S&P 500TM Index", are registered trademarks of Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc. "CBOE®" is a registered trademark of and "BuyWrite" is a trademark of Chicago Board Options Exchange, Incorporated ("CBOE"). These marks have been licensed for use by Invesco. The Invesco S&P 500 BuyWrite Fund is not sponsored, endorsed, sold or promoted by S&P or CBOE, and S&P and CBOE make no representation regarding the advisability of investing in the Invesco S&P 500 BuyWrite Fund.