The CBOE Volatility Index, or Wall Street’s fear gauge, experienced its most volatile week since April. Invesco senior portfolio manager John Burrello recommends income funds with options-based strategies for investors wary of recent market swings. These funds offer structural protection and income that’s not interest rate sensitive.

Burrello believes options provide reliable downside protection regardless of stock correlations. As the rate cutting cycle continues, he sees this as an advantage for investors. He notes the importance of adding income without relying on the Fed, driving growth in the space.

Invesco offers income-generated funds like the Invesco QQQ Income Advantage ETF and Invesco MSCI EAFE Income Advantage ETF. The Invesco MSCI EAFE Income Advantage ETF has gained about 14% this year, while the QQQ Income Advantage ETF is up about 6%. The Invesco S&P 500 Equal Weight Advantage ETF is flat for the year.

Burrello sees a long-lasting demand for options and defined outcome strategies. He emphasizes the timeless need for income and defense against equity drawdowns in portfolios. With a surge in new product launches in the option income space, he cautions investors to choose wisely, focusing on professional management and sustainable yields.

Read more at CNBC: Invesco looks at income portfolio strategies