Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) Wheel Strategy

Running a PDN wheel strategy lets you generate consistent premium income on Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF while setting your own entry and exit prices on the underlying. Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own PDN, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best PDN wheel strategy setups in real time.

The wheel works best on liquid, high-quality names with stable fundamentals and active options markets — exactly the profile many large-cap leaders fit. The mechanics are simple: sell a cash-secured put on PDN, collect premium, and either keep the premium if it expires worthless or take assignment at a discount to current price. Once assigned, sell covered calls against the shares to keep collecting premium until they're called away. Choosing the right strikes, expirations, and IV environment is what separates a profitable PDN wheel from a losing one.

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.

The difference between a wheel that compounds and one that bleeds comes down to strike selection, IV timing, and discipline on assignment. Our scanner handles the heavy lifting: it ranks every leg of the PDN wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your PDN wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.