Invesco S&P 500 Equal Weight Income Advantage ETF

RSPA

Market cap $846M

Covered call ETFs have had a moment in the light, and the JPMorgan Equity Premium Income ETF (NYSE:JEPI) has captured much of that attention.

The Undercovered Dozen series spotlights 12 lesser-covered stocks from the past week on Seeking Alpha. This week's edition covers articles published between March 20 and March 26, offering fresh investment ideas. The focus is on stocks that may offer unique opportunities due to limited analyst coverage.

Invesco S&P 500 Equal Weight Income Advantage ETF (NYSEARCA:RSPA) pays investors a monthly distribution that would be the envy of most income strategies.

Invesco S&P 500 Equal Weight Income Advantage ETF offers diversified S&P 500 exposure with a 9%+ monthly yield via an options-based call-writing overlay. The fund's approach to call-writing overlay is done with equity-linked notes, which is different from most of its other call-writing peers. RSPA's ELN strategy results in less tax-efficient, mostly ordinary income distributions, making it less attractive for taxable accounts versus peers.

If you purchase a 10-year U.S. Treasury bond, you'll get an annual yield of around 4%.

RSPA: How To Optimize The Rule Of 72 Compared To RSP

Invesco S&P 500 Equal Weight Income Advantage ETF offers a 9% yield via an equal-weighted S&P 500 portfolio and equity-linked notes. RSPA features low company risk, sector diversification, and a 0.29% expense ratio. RSPA has marginally outperformed RSP in total return since inception, but its track record is too short for long-term assessment.

Invesco S&P 500 Equal Weight Income Advantage ETF offers a unique approach with equal-weighted S&P 500 exposure and dynamic call writing. RSPA's sector allocation shifts away from tech toward cyclicals and defensives, potentially benefiting from a market rotation as rate cuts approach. While the fund has underperformed recently due to mega-cap dominance, it may outperform peers if broader market participation increases.

For steady sources of income, investors can use ETFs to diversify into hundreds of reliable dividend-paying stocks.

The QDVO, SPYI, RSPA, and QQQI ETFs offer steady income and high annual yields. Investors should factor in the operating fees of these ETFs before considering buying them.