Investors today are looking for income solutions that can do more than traditional dividend and bond investments. ProShares Autocallable Income ETFs are designed to target high income through a diversified* autocallable strategy with the liquidity, transparency and convenience of an ETF. In this video, you'll learn what an autocallable note is, how it works, and how ProShares Autocallable Income ETFs simplify access to a laddered autocallable strategy in a single ETF.

*Diversification does not ensure a profit or guarantee against a loss.

Video Transcript:

Investors today are looking for income solutions that can do more than traditional dividend and bond investments.

That’s why ProShares created the Autocallable Income E-T-Fs, which are designed to target high income through a diversified autocallable strategy with the liquidity, transparency and convenience of an ETF.

Before exploring the ETF strategy, let’s start with the foundation: what is an autocallable note?

An autocallable note is an investment linked to the performance of an underlying index, such as the S&P 500, Nasdaq-100, or Russell 2000.

A typical autocallable note is designed to generate income and return principal at maturity, provided the underlying index remains above a certain level, or “barrier.”

Here’s how it works.

If the underlying index remains above the barrier at maturity, investors receive their principal back.

And if the underlying index has risen above a predetermined level after a specified period, the autocallable may be redeemed early, or “called.” In that case, investors receive their principal back, and the strategy can be reinvested into a new autocallable.

Conversely, if the underlying index has fallen below the barrier at maturity, investors face losses tied to the index’s decline.

At its core is a trade-off: in exchange for potentially attractive income, an autocallable investor takes on downside risk without receiving appreciation potential.

Traditionally, autocallables have been purchased individually through financial institutions. That can make them more difficult to access, diversify, and manage.

ProShares Autocallable Income ETFs simplify access and build on traditional autocallable notes with a diversified, laddered strategy.

Each ProShares Autocallable Income ETF:

• Aims to provide high income and potentially tax-efficient distributions
• Employs a laddered approach to help address concentration and timing risks
• Offers a single-ticker solution with liquidity, removing the burden of managing individual notes
  
  

ProShares Autocallable Income ETFs combine compelling income potential, a strategy that potentially mitigates risk, and the simplicity of single-ticker ETF access—a potentially powerful combination for investors seeking income solutions that can do more.

Learn more at proshares.com/autocallables.