Fund Highlight

ITWO

Russell 2000 High Income ETF

 

First Russell 2000 ETF powered by a daily call options strategy.

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A Next-Generation Covered Call Strategy

Traditional covered call ETFs rely on writing monthly options, which often means sacrificing upside to generate yield. ITWO, by contrast, employs a daily covered call strategy, designed for investors seeking high income potential and total returns consistent with the Russell 2000 small-cap index.

High Income Potential

Daily call options can produce a high level of income*

Efficient Income Generation

Seek income and target Russell 2000 returns over the long term

Higher Return Potential

Seek to capture returns that monthly covered call strategies may sacrifice

*ITWO gains exposure to the sale of daily call options using swap agreements and does not trade options.

“

ITWO, the first Russell 2000 ETF powered by a daily call options strategy, expands our suite of first-to-market innovations in the fast-growing covered call category.

Michael L. Sapir, ProShares CEO

The Opportunity

Should You Expect More From Your Covered Call Strategy?

While covered call strategies can generate attractive levels of income under the right circumstances, traditional strategies typically require investors to make a costly trade-off between high income potential and potential total returns. Learn how ProShares High Income ETFs may offer a better solution.

ProShares High Income ETFs

High Income

ISPY

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.

View Fund Details
High Income

IQQQ

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.

View Fund Details
High Income

ITWO

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.

View Fund Details

Research & Insights

Seek High Income Potential With Small-Cap Upside

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.
Read More
Should You Expect More from Your Covered Call Strategy?

A new covered call approach may help investors capture both income and greater returns.

Read the article
A More Effective Approach to Equity Income?

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.

Read the article
IQQQ: Target Both High Income and Nasdaq-100 Returns

Watch ProShares’ Simeon Hyman discuss the launch of Nasdaq-100 High Income ETF (IQQQ) as part of Nasdaq’s 'Just for Funds' video series.

View the video
Get the latest perspectives and updates.

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 make distributions each month of an amount that reflects the dividends and call premium income earned by a daily Russell 2000 Index covered call strategy (net of expenses). There can be no guarantee that the Fund will make such distributions, and the amount of such distributions, if any, may vary significantly from month to month. Some or all of such distributions may be characterized as a return of capital.

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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