This ETF strategy could help risk-averse investors ride out wild market swings

Core Insights - The CBOE Volatility Index, known as Wall Street's fear gauge, has experienced its most volatile week since April [1] - Invesco's senior portfolio manager suggests that income funds using options-based strategies provide structural protection and are a sound investment strategy during volatile market conditions [1][2] Investment Strategies - Options-based strategies are not dependent on stock correlations with other asset classes, offering reliable downside protection and income that is not sensitive to interest rates [2] - The anticipated rate cuts by policymakers are expected to benefit these income strategies, as they provide income without reliance on Federal Reserve actions [2][3] Fund Performance - Invesco's income-generating funds, such as the Invesco QQQ Income Advantage ETF and Invesco MSCI EAFE Income Advantage ETF, have shown positive performance this year, with the latter gaining approximately 14% and the former up about 6% [3] - The Invesco S&P 500 Equal Weight Advantage ETF has remained virtually flat for the year, indicating varied performance across Invesco's fund offerings [4]