Invesco S&P MidCap Low Volatility ETF (XMLV) Wheel Strategy

Running a XMLV wheel strategy lets you generate consistent premium income on Invesco S&P MidCap Low Volatility ETF while setting your own entry and exit prices on the underlying. Invesco S&P MidCap Low Volatility 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 XMLV, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best XMLV 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 XMLV, 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 XMLV wheel from a losing one.

The Invesco S&P MidCap Low Volatility ETF (Fund) is based on the S&P MidCap 400 Low Volatility Index (Index). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor's, consisting of 80 out of 400 medium-capitalization securities from the S&P MidCap 400 Index with the lowest realized volatility over the past 12 months. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time. The Fund and the Index are rebalanced and reconstituted quarterly.

As of 08/31/2025 the Fund had an overall rating of 4 stars out of 577 funds and was rated 3 stars out of 577 funds, 3 stars out of 556 funds and 5 stars out of 405 funds for the 3-, 5- and 10- year periods, respectively. Source: Morningstar Inc. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2025 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.

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 XMLV wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your XMLV wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.