Fund Evaluator:

Invesco Income Advantage U.S. Fund Y Overview

Invesco Income Advantage U.S. Fund Y (SCAYX) is an actively managed Nontraditional Equity Derivative Income fund. Invesco launched the fund in 2008.

The investment seeks income and long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of U.S. issuers, and in derivatives and other instruments that have economic characteristics similar to such securities. It invests primarily in U.S. equity securities, including common and preferred stock, and ELNs. It may also invest in real estate investment trusts (REITs), which are trusts that sell equity and/or debt securities to investors and use the proceeds to invest in real estate or interests therein.

About Invesco Income Advantage U.S. Fund Y (SCAYX)

There are 4 members of the management team with an average tenure of 4.96 years: Scott Wolle (2021), Chris Devine (2021), John Burrello (2021), Scott Hixon (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Invesco Income Advantage U.S. Fund Y has 367 securities in its portfolio. The top 10 holdings constitute 48.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Invesco Income Advantage U.S. Fund Y is part of the Equity global asset class and is within the Nontraditional Equity fund group. Invesco Income Advantage U.S. Fund Y has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 82.0%. There is 0.5% 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 Income Advantage U.S. Fund Y has 17.5% of the portfolio in cash.

Assets Under Management

The fund has $16 million in total assets, which is below the $233 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.

SCAYX 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 Income Advantage U.S. Fund Y expense ratio is high compared to funds in the Derivative Income category. Invesco Income Advantage U.S. Fund Y has an expense ratio of 0.86%, which is 23% lower than its category average, making the fund expense ratio grade a B. 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. A portfolio turnover rate cannot be currently calculated for Invesco Income Advantage U.S. Fund Y. By way of comparison, the average portfolio turnover is 115% for the Derivative Income category.

Recently, in the month of June 2026, Invesco Income Advantage U.S. Fund Y returned -0.5%, which earned it a grade of D, as the Derivative Income category had an average return of 0.1%. 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 funds in that category.

Invesco Income Advantage U.S. Fund Y has a trailing yield of 6.40%, which is above the 4.51% 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 Income Advantage U.S. Fund Y Grades

Year to date, the fund has returned 7.0%, 0.7 percentage points better than the category, which translates into a grade of C. The fund has returned 17.4% over the past year (grade of B), 16.1% over the past three years (grade of A) and 10.1% per year over the past five years (grade of A) and 8.0% per year over the past 10 years (grade of C).

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