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ProShares now offers one of the largest lineups of ETFs, with over $100 billion in assets. The company is a leader in strategies such as crypto, dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
Target high income and Russell 2000 returns over the long term—all in one ETF.
Traditional covered call ETFs rely on writing monthly options, which often means sacrificing upside to generate yield. With ITWO, investors can target high income and Russell 2000 returns over the long term—all in one ETF.
Targets High Income
ITWO targets high income potential by employing daily options in a covered call strategy.*
Long-Term Russell 2000 Returns
In addition to generating monthly income, ITWO seeks long-term returns consistent with the small-cap Russell 2000.
Differentiated Approach
Unlike traditional covered call ETFs, which often sacrifice upside for yield, ITWO targets both short-term high income and attractive long-term total return potential.
*ITWO gains exposure to the sale of daily call options using swap agreements and does not trade options.
Investors have flocked to covered call strategies to help generate income and maintain the potential for equity market returns. Now, daily covered call innovations offer a potentially more effective approach than traditional covered call strategies in the small-cap space.
S&P 500 High Income ETF
ProShares S&P 500 High Income ETF seeks investment results, before fees and expenses, that track the performance of the S&P 500 Daily Covered Call Index.
Nasdaq-100 High Income ETF
ProShares Nasdaq-100 High Income ETF seeks investment results, before fees and expenses, that track the performance of the Nasdaq-100 Daily Covered Call Index.
Russell 2000 High Income ETF
ProShares Russell 2000 High Income ETF seeks investment results, before fees and expenses, that track the performance of the Cboe Russell 2000 Daily Covered Call Index.
Traditional monthly covered call strategies have failed to provide downside protection, but ProShares has an innovative solution.
Watch Global Investment Strategist Simeon Hyman discuss potential ways to generate efficient income with ProShares High Income ETFs.
A new covered call approach may help investors capture both income and greater returns.
A strategy based on daily call options combined with a dividend growth strategy can together potentially deliver high income now, grow income over time, and improve long-term total returns.
ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to enhance returns and manage risk.
ITWO seeks to replicate a daily covered call strategy by investing in equity securities and derivatives. The Fund does not sell (write) call options.
Index information does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index.
Investing involves risk, including the possible loss of principal. This ProShares ETF is non-diversified and entails certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), investments in smaller companies, imperfect benchmark correlation, and market price variance, all of which can increase volatility and decrease performance. Please see summary and full prospectuses for a more complete description of risks.
There is no guarantee any ProShares ETF will achieve its investment objective. The performance of the Fund may not correspond to the performance of the Russell 2000 Index, the Fund may not be successful in generating income for investors, and the Fund may not capture returns that traditional covered call strategies may sacrifice.
The Cboe Russell 2000® Daily Covered Call Index replicates the performance of a covered call investment strategy that combines a long position in the Russell 2000 Index with a short position in Russell 2000 Index® call options. In particular, the index is designed to replicate a daily covered call strategy that sells call options with one day to expiration each day. The Fund intends to distribute amounts that generally reflect the dividend and call premium income earned by the Index’s daily covered call strategy (net of expenses). Each month the Fund intends to distribute the dividend and call premium income earned by the Index, subject to a minimum yield of 6% (annualized). If the income earned by the Index is less than the minimum yield, the Fund will seek to distribute an additional amount to maintain the minimum yield. The dividend and call premium income earned by the Fund’s Index in subsequent months will be used to recoup the additional distribution amounts of prior months. This will reduce future distributions of the Fund. If the Fund experiences sustained periods of low income, the Fund will continue to make distributions to meet the minimum monthly yield, which may result in economic returns of capital. An economic return of capital may result in a return of your investment in the Fund. There is no guarantee the Fund will make any distributions and the amount of such distributions, if any, may vary significantly from month to month. On 19a-1 notices, the Fund discloses the accounting source of each distribution, either net investment income or accounting return of capital. The accounting source of the distribution does not impact whether the distribution is considered to be taxable income or a tax return of capital for income tax purposes.
Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ©LSE Group 2024. FTSE Russell is a trading name of certain of the LSE Group companies. The “Cboe Russell 2000 Daily Covered Call Index”, and “Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.
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