ISPY: A Year of Outperformance

Traditional monthly covered call strategies are popular for income but often cap upside potential. The ProShares S&P 500 High Income ETF (ISPY) takes a more balanced approach, aiming to maximize both income and total returns.

True to its objective, in its first year, ISPY delivered strong performance, surpassing peers in both total return and income generation. As the first ETF to use daily options in a covered call strategy, ISPY enhances income potential while maintaining equity-like returns.

• ISPY delivered a total return of 22.5% from its inception through 12/31/24. This significantly outpaces the 16.8% average return of monthly covered call ETFs benchmarked to the S&P 500 over the same period.[1]
• ISPY generated a trailing 12-month distribution rate of 9.8%, surpassing the 9.2% average yield of monthly covered call ETFs benchmarked to the S&P 500.[2]

ISPY Outperformed Its Peers in Its First Year
Total Return and Trailing 12-month Distribution Rate Since Inception

ISPY total return performance since fund inception 12/18/23–12/31/24 is 22.5%. One-year standardized total return 1/1/24–12/31/24 is 21.49% (NAV) and 21.35% (Market Price). S&P 500 returns 1/1/24–12/31/24 is 25.02%, source Morningstar. 

The Trailing 12-Month Distribution Rate represents the sum of the ISPY's distributions for the last 12 months, expressed as a percentage of the NAV, as of 12/31/24, via Morningstar. Distributions include return of capital which may be taxable or non-taxable. The characterization as return of capital does not impact whether the distribution is taxable. See 19a-1 notice for estimated percentage of return of capital. Distributions will reduce the NAV by the amount of the distribution. Future distributions may differ significantly from the latest distribution and are not guaranteed. Actual sources of the distributions may vary at the end of the year and will be provided in a Form 1099-DIV.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET (when NAV is normally determined for most funds). Your brokerage commissions will reduce returns. Current performance may be lower or higher than the performance quoted. For standardized returns and performance data current to the most recent month end, see the Performance page.

What Makes ISPY Stand Out?

Launched in December 2023, ISPY pioneered a covered call ETF strategy that uses daily options to better target both equity-market-like returns and high-income yield in the same ETF.

Unlike traditional monthly covered call funds, ISPY’s design:

• Targets High Income
  ISPY's covered call strategy utilizes daily options to generate high income from both call premiums and dividends of the underlying holdings. 
• Provides an Opportunity for S&P 500 Upside
  The combination of stock market returns and call option premiums collected provides the opportunity for ISPY to capture long-term total returns consistent with the S&P 500.
• Captures Total Returns Often Missed by Traditional Covered Call Strategies
  By leveraging daily options, ISPY offers the potential to target S&P 500 returns over time while also outperforming traditional covered call strategies.

[1] Source: Bloomberg. Data as of 12/31/24. Based on a ProShares study group of 16 large-cap covered call ETFs benchmarked to the S&P 500 Index with more than one year of performance history and at least $20mm in assets under management. The group represents 55% of ETF assets under management in Morningstar’s Derivative Income category. Past performance does not guarantee future results.

[2] Source: Morningstar. Data as of 12/31/24.