Invesco S&P 500 BuyWrite ETF (PBP)

Overview

The company manages a fund that primarily focuses on investing in securities which are part of an underlying index, aiming to replicate or exceed the performance of a specific benchmark index. This index is based on a "buy-write" strategy, applied to the S&P 500® Index. By adopting this strategy, the fund writes (sells) call options on securities that are constituents of the underlying index. This approach is designed to provide investors with exposure to the underlying securities while potentially generating income from the premiums received from writing the call options. The fund commits at least 90% of its total assets to investments that directly correspond to the constituents of the underlying index, ensuring a high degree of fidelity to its benchmark strategy.

Products and Services

• Buy-Write Strategy Fund

  This product is centered around the implementation of a buy-write strategy on the S&P 500® Index. By purchasing the underlying securities of the index and simultaneously writing call options on the same securities, the fund seeks to generate income from the option premiums in addition to potential capital gains from the underlying securities. This strategy is designed to provide investors with a potentially lower volatility investment compared to directly investing in the S&P 500® Index, by potentially earning income from the written call options during periods of flat or modestly growing markets.

• Index Tracking

  The fund closely tracks the performance of a total return benchmark index, designed to mirror the returns of a hypothetical buy-write strategy on the S&P 500® Index. By investing at least 90% of its total assets in the securities that are part of the underlying index, the fund ensures high correlation with the benchmark performance. This allows investors to gain exposure to the dynamics of the S&P 500® Index, while potentially mitigating risks and enhancing returns through the buy-write strategy.