EFAA Provides EFA Exposure Combined With Options Overlay: Only A Hold For Now

I rate Invesco MSCI EAFE Income Advantage ETF a Hold due to its short track record and concerns typical of option-overlay ETFs versus their plain-vanilla counterparts. EFAA offers a 7.6% yield and monthly distributions, significantly higher than iShares MSCI EAFE ETF's 2.85% yield and semi-annual payments. While EFAA's option overlay boosts income, it comes with a 238bps CAGR deficit, raising questions about long-term total return trade-offs.