Many investors look to accumulate as much wealth as possible when they are young, even if they have to take plenty of risks. However, older investors become risk averse and usually shift their focus to wealth preservation.
Investing in ETFs that offer a mix of passive income and some potential upside may help retirees who don’t have high risk tolerances. These Invesco ETFs are worth considering for baby boomers who want to get steady cash flow and more mileage out of their nest eggs.
Invesco S&P 500 BuyWrite ETF (PBP)
The Invesco S&P 500 BuyWrite ETF (NYSEARCA:PBP) invests in the S&P 500 and writes call options. The ETF aims to generate steady options premiums by selling covered calls. While the fund underperforms the S&P 500, it offers a generous 10.17% 12-month distribution rate.
The fund has a 0.29% expense ratio and has delivered an annualized 6.7% return over the past decade. It has also delivered a 20.9% gain over the past year.
Invesco Zacks Multi-Asset Income ETF (CVY)
The Invesco Zacks Multi-Asset Income ETF (NYSEARCA:CVY) consists of U.S. equities, American depositary receipts, REITs, MLPs, closed-end funds, and traditional preferred stocks. The portfolio translates into a 3.86% distribution rate over the past 12 months and a 1.12% expense ratio.
The fund puts more than 60% of its assets in the financials and energy sectors. It also has more than 150 holdings, with no position making up more than 1.50% of the fund’s total assets. CVY offers portfolio diversification away from stocks. You will receive cash flow from multiple asset classes, which can minimize volatility. CVY has an annualized 6.2% return over the past decade.
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
The Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) has a 0.30% expense ratio and a 12-month distribution rate of 3.63%. SPHD prioritizes defensive sectors like utilities, consumer staples, and healthcare, which make up more than half of the fund’s total assets.
The high-yield ETF has delivered an annualized 8.2% return over the past decade. It’s also coming off a strong year that featured a 21.6% return. SPHD has 53 holdings and allocates 27% of its assets to its top 10 holdings.
Invesco S&P 500 Enhanced Value ETF (SPVU)
The Invesco S&P 500 Enhanced Value ETF (NYSEARCA:SPVU) puts 90% of its capital into stocks that are in the S&P 500 index. It has a 12-month distribution rate of 2.58% and a low 0.13% expense ratio. It’s up by 22.2% over the past year and has delivered an annualized 9.2% return over the past five years.
More than one-third of its total assets go in the financials sector. Energy and health care make up more than 30% of SPVU’s total positions. SPVU has 103 holdings and allocates 39% of its capital to its top 10 holdings. Approximately 80% of the fund’s total assets are in large-cap value stocks and mid-cap value stocks.
Invesco S&P 500 Pure Value ETF (RPV)
The Invesco S&P 500 Pure Value ETF (NYSEARCA:RPV) invests approximately 90% of its assets into securities that are in the S&P 500. Each stock is assigned a value score and a growth score that determine whether it’s added to the fund or not.
This criteria has resulted in RPV generating an annualized 9.0% return over the past five years. It has also gained 20% over the past year and has a 12-month distribution rate of 2.07%. RPV shares have a 0.35% expense ratio. The fund allocates 22% of its capital into its top 10 holdings.
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