(EFAA) Invesco Actively Managed - Ratings and Ratios

The Invesco Actively Managed Exchange-Traded Fund Trust, traded as EFAA on the NYSE ARCA, is an actively managed ETF that aims to achieve its investment objective through a dual strategy. Firstly, it invests in a portfolio of equity securities, including depositary receipts, that mirrors the performance of the MSCI EAFE Index, or it invests in U.S.-listed ETFs that track this index, or employs a combination of both approaches. The MSCI EAFE Index is a benchmark for international equity performance, covering developed markets outside of North America. By tracking this index, EFAA provides investors with exposure to a broad range of international equities.

Secondly, EFAA employs an options-based income strategy through the use of equity-linked notes (ELNs) that have exposure to the MSCI EAFE Index or ETFs that track it. This strategy is designed to generate income for the fund, potentially enhancing its overall returns. The use of ELNs allows the fund to benefit from the performance of the underlying index or ETFs while generating regular income, which can be particularly attractive in low-yield environments.

Its worth noting that EFAA is classified as a non-diversified fund, meaning it can invest a larger portion of its assets in a smaller number of securities, potentially increasing its risk profile compared to diversified funds. This characteristic, combined with its use of derivatives and ELNs, indicates that EFAA is designed for investors seeking income and international equity exposure, but who are also willing to take on a potentially higher level of risk.

Analyzing the technical data, EFAAs last price is $50.22, indicating a bullish trend as it is above its SMA20 ($49.46), SMA50 ($48.66), and SMA200 ($47.26). The Average True Range (ATR) of 1.01, representing a 2.00% daily volatility, suggests moderate daily price movements. Given the current price is near its 52-week high of $50.37, and considering the upward trend indicated by the SMA values, a potential forecast could be that EFAA continues to move upwards, potentially testing new highs. However, the proximity to its 52-week high also suggests a potential for consolidation or a slight pullback before further gains.

Combining technical and fundamental analysis, with $142.57M in AUM, EFAA has a reasonable size that allows for liquidity. The funds strategy of tracking the MSCI EAFE Index while generating income through an options-based strategy could continue to attract investors seeking international equity exposure and yield. If the MSCI EAFE Index continues to perform well and the options-based income strategy remains effective, EFAA could potentially see further inflows and an increase in its price. A forecast based on these considerations is that EFAA could reach $52.00 in the next few months, contingent on the continued positive performance of the underlying index and the effectiveness of its income-generating strategy.