Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) Covered Calls

Running PDN covered calls helps you generate consistent income from Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF's shares you already own, turning a long stock position into a yield-producing asset. A covered call on Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF involves holding the underlying stock and selling a call option against it, collecting premium in exchange for capping upside at the strike price. Use our scanner to find the best PDN covered calls in real time and filter for the strikes, expiries, and premiums that fit your strategy.

A covered call is one of the most widely used options strategies because it pairs limited risk with a clear income profile: if PDN stays below the strike at expiration, you keep the premium and the shares; if it rises above, you deliver the stock at the strike and still pocket the premium. Selling PDN covered calls works best when implied volatility is elevated, since richer premiums improve the risk-reward. Key inputs to evaluate include strike selection relative to delta, days to expiration, annualized return, and the probability of assignment — all of which determine whether a given Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF covered call is worth writing.

The Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (Fund) is based on the RAFI Fundamental Select Developed ex US 1500 Index (Index). The Fund will generally invest at least 90% of its total assets in securities that comprise the Index as well as American depositary receipts (ADRs) and global depositary receipts (GDRs) that represent securities in the Index. The Index is designed to track the performance of small and mid-capitalization equities of companies in developed international markets (excluding the US), selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.

The equities are based on their fundamental strength and are weighted according to their fundamental scores. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are reconstituted annually.Effective close of business March 21, 2025, FTSE RAFI Developed ex U.S. Mid-Small 1500 Index ("Current Underlying Index") will change to the RAFI Fundamental Select Developed ex-US 1500 Index ("New Underlying Index"). The New Underlying Index will replace the Fund’s Current Underlying Index. The Fund’s name will change to “Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF”. Additionally, the Fund's management fee will reduce to 47 bps.

Income-focused investors, long-term PDN holders, and systematic premium sellers all face the same challenge: finding the covered call strike and expiry that balances yield against the risk of being called away. Our scanner ranks covered calls by annualized return, downside protection, and probability of profit, so selling PDN covered calls becomes a measured decision instead of a guess. Stop eyeballing the chain — let the best Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF covered calls come to you, already filtered for the metrics that matter.