At a glance
EFAA charges 0.39% a year. It has $616.0M in assets; it paid 8.51% of its price in distributions over the past 12 months, monthly. Over the past year it returned +10.4% with distributions reinvested (S&P 500: +11.5%). Its ten largest positions make up 11.0% of the fund, out of 692 in all.
The short version
Invesco MSCI EAFE Income Advantage ETF (EFAA) is an actively managed fund. It holds the stocks in the MSCI EAFE Index, which covers developed markets outside the US and Canada, and adds a layer of option income through bank-issued notes. Its goal is monthly income with smaller swings than the index. The trailing 12-month yield was 8.51% as of October 27, 2026. In exchange, it gives up some upside in strong markets, and most of its income is usually taxed as ordinary income.
Price history
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EFAA +10.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EFAA official prospectus, to Dec 31, 2025 | — | +24.75% | — | — | — | +13.94% |
| EFAA price data to Oct 27, 2026 | +7.7% | +10.4% | — | — | — | +12.5% |
- Over the year to Oct 27, 2026, EFAA returned +10.4%.
- Its worst full calendar year was 2025 (+25.7%); its best was 2025 (+25.7%).
- The deepest fall in its price history was 12% (Mar 19, 2025 to Apr 8, 2025), recovered by Apr 28, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.7% | — |
| 2025 | +25.7% | +24.75% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.8700 | |
| 2025 | $4.2800 |
What's inside
As of Jul 31, 2026, the fund held 692 securities; the ten largest made up 10.96% of assets, and 18.3% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| ASML Holding N.V. | 2.28% | |
| HSBC Holdings PLC | 1.31% | |
| Roche Holding AG | 1.10% | |
| Novartis AG | 1.02% | |
| Nestle S.A. | 0.92% | |
| AstraZeneca PLC | 0.92% | |
| Shell PLC | 0.92% | |
| Siemens AG | 0.87% | |
| Mitsubishi Ufj Financial Group, Inc. | 0.85% | |
| BHP Group Ltd. | 0.76% | |
| Commonwealth Bank of Australia | 0.75% | |
| Banco Santander S.A. | 0.73% | |
| SAP SE | 0.68% | |
| Allianz SE | 0.68% | |
| Schneider Electric SE | 0.66% |
By country
Japan 18.06%United Kingdom 11.13%France 8.33%Switzerland 7.52%Germany 6.96%By asset type
Stocks 78.24%Bonds and notes 5.24%Preferred stock 0.17%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $118.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.35%, +1.00%, +1.53%.
How it works
EFAA splits its money among three parts. The largest part is a stock portfolio that tracks the MSCI EAFE Index by "full replication." That means it aims to own every stock in the index at the index's own weight. MSCI weights the index by market value, counting only the shares that are freely available to trade. The index covers large and mid-sized companies in 21 developed markets across Europe, Australasia and the Far East. As of December 31, 2025, it had 693 stocks. The fund may also hold US-listed ETFs that track the same index.
The second part is an income sleeve. Up to 10% of assets go into equity-linked notes (ELNs). An ELN is a short-term note, issued by a bank, that bundles exposure to the index with options. Inside these notes, the options are generally covered calls and cash-secured puts. The fund collects the option premiums as income. In return, it gives up gains above the call's exercise price and takes on the credit risk of the issuing bank.
The third part is cash and Treasury bills, held to soften losses. As of July 31, 2026, stocks made up 78.2% of the fund, cash 18.3%, and bonds and notes 5.2%. The managers can change this mix at any time. They can also use futures, options and currency forwards to hedge. The fund is classed as non-diversified.
What it really costs
- EFAA charges 0.39% a year.
- The fee includes a 0.03% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $527 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EFAA | $40 | $132 | $232 | $527 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
EFAA pairs a broad basket of developed-market stocks outside the US with option premiums paid out monthly, and its trailing yield was 8.51% as of October 27, 2026.
EFAA could add stocks from outside the US to a portfolio, along with monthly income. Its trailing 12-month payout was $4.62 per share as of October 27, 2026, a yield of 8.51%. Much of that money comes from option premiums. Those are usually taxed as ordinary income, and they can shrink from one year to the next. The expense ratio is 0.39%. In the SEC's standard $10,000 example, that comes to $40 after one year and $527 after ten.
The track record is short. The fund launched on July 17, 2024, so it never went through the 2008, 2020 or 2022 sell-offs. Its deepest drop was 12%, from March 19 to April 8, 2025, and it had recovered by April 28. Its only full calendar year, 2025, returned 24.75%. So there is no record of how it would hold up for someone selling shares during a long bear market. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want developed-market stocks outside the US, such as ASML, HSBC and Roche, along with income paid every month.
- Retirees who will give up some gains in strong rallies for smaller swings. The fund's beta was 0.71 over the year to October 27, 2026.
- Investors who hold it in IRAs or other tax-advantaged accounts, where option income taxed as ordinary income matters less.
Look elsewhere if
- Investors who want the full upside of the MSCI EAFE Index. Covered calls cap gains, and 18.3% of the fund was in cash as of July 31, 2026.
- Anyone who wants a long track record. The fund launched in July 2024 and hasn't yet been tested in a deep or lasting bear market.
- Investors who want a simple fund. EFAA uses bank-issued notes that carry credit risk, and its managers can add futures and currency hedges.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does EFAA pay monthly dividends?
Yes. EFAA pays distributions every month. Over the 12 months to October 27, 2026, it paid $4.62 per share, a trailing yield of 8.51%. Part of that comes from dividends on its stocks. Much of it comes from option premiums earned through equity-linked notes. Option income is usually taxed as ordinary income, not as qualified dividends. Payouts can also change as markets move and as the managers change the fund's mix.
How does EFAA generate its high yield?
Most of EFAA's extra income comes from options. The fund puts up to 10% of its assets into equity-linked notes, which are short-term bank notes with covered calls and cash-secured puts built in. Selling those options earns premiums, and the fund passes them on to holders. In exchange, the fund gives up gains above the options' exercise prices. It also takes on the credit risk of the banks that issue the notes.
What's the difference between EFAA and an MSCI EAFE index fund?
A plain MSCI EAFE index fund simply owns the index's stocks. EFAA owns those same stocks through full replication, but it adds an options-income sleeve and a cash buffer that its managers can resize at any time. As of July 31, 2026, 18.3% of the fund was in cash. That setup aims for more income and smaller swings, but EFAA will likely lag the index in strong rallies.
What is EFAA's expense ratio?
EFAA's expense ratio is 0.39%, according to its prospectus filed February 26, 2026. The SEC's standard example assumes $10,000 invested, a 5% annual return, and shares sold at the end of each period. On that basis, total costs come to about $40 after one year, $132 after three years, $232 after five years and $527 after ten. Portfolio turnover was 6%, which is low.
How has EFAA performed since it launched?
EFAA returned 24.75% in 2025, its first full calendar year. Its average annual return from launch in July 2024 through December 31, 2025 was 13.94%. Based on price, it gained 10.4% over the year to October 27, 2026. Its deepest drop was 12%, from March 19 to April 8, 2025, and it had recovered by April 28. The record is short and doesn't include a major bear market.