ETF Evaluator: Invesco MSCI EAFE Income Advantage ETF () Follow This ETF

Invesco MSCI EAFE Income Advantage ETF Overview

Invesco MSCI EAFE Income Advantage ETF (EFAA) is an actively managed Nontraditional Equity Derivative Income exchange-traded fund (ETF). Invesco launched the ETF in 2024.

The investment seeks total return through current income and long-term growth of capital. The fund seeks to achieve its investment objective by: (1) investing in a portfolio of equity securities, including depositary receipts, designed to track the performance, before fees and expenses, of the MSCI EAFE Index or U.S.-listed exchange-traded funds (ETFs) that seek to track the performance of the index, or both, and (2) utilizing an options-based income strategy implemented through equity-linked notes (ELNs) with exposure to either the index or ETFs tracking the index. The fund is non-diversified.

About Invesco MSCI EAFE Income Advantage ETF (EFAA)

There are 4 members of the management team with an average tenure of 2.04 years: Chris Devine (2024), Peter Hubbard (2024), John Burrello (2024) and Scott Hixon (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: MSCI EAFE NR USD index with a weighting of 100%. Invesco MSCI EAFE Income Advantage ETF has 702 securities in its portfolio. The top 10 holdings constitute 26.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco MSCI EAFE Income Advantage ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Invesco MSCI EAFE Income Advantage ETF has 77.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.3% There is 77.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco MSCI EAFE Income Advantage ETF has 21.3% of the portfolio in cash.

Assets Under Management

The fund has $618 million in total assets, which is below the $727 million average for the Derivative Income category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

EFAA Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco MSCI EAFE Income Advantage ETF expense ratio is below average compared to funds in the Derivative Income category. Invesco MSCI EAFE Income Advantage ETF has an expense ratio of 0.39%, which is 53% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco MSCI EAFE Income Advantage ETF has a portfolio turnover rate of 6%, which indicates that it holds its assets around / 0.2 years. By way of comparison, the average portfolio turnover is 69% for the Derivative Income category.

Recently, in the month of July 2026, Invesco MSCI EAFE Income Advantage ETF returned 1.5%, which earned it a grade of B, as the Derivative Income category had an average return of -1.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco MSCI EAFE Income Advantage ETF has a trailing yield of 8.15%, which is below the 19.96% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco MSCI EAFE Income Advantage ETF Grades

Year to date, the ETF has returned 9.5%, 6.9 percentage points better than the category, which translates into a grade of B. The fund has returned 20.9% over the past year (grade of B).

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