The team at a $64-billion-AUM (as of November 30) fund firm is adding another passively managed fund to their lineup, this one to track an index that combines a short position with a daily covered call position.

Michael Lynn Sapir ProShare Advisors, ProFund Advisors CEO

This morning, Michael Sapir, CEO of ProShares [profile], unveiled the launch of the ProShares S&P 500 High Income ETF (ISPY on the Cboe BZX U.S. Equities Exchange). The new index fund is a series of the ProShares Trust.

ISPY's inception date was Monday. It comes with an expense ratio of 55 basis points.

ProShare Advisors serves as investment advisor to ISPY, and S&P Dow Jones Indices, LLC serves as index provider. The new ETF's PM team includes Michael Neches, senior portfolio manager, and Devin Sullivan, PM, and is designed to track the S&P 500 Daily Covered Call Index.

Sapir puts the launch of ISPY in the context of the ProShares team seeing "substantial demand for income beyond conventional sources." He lays claim to the new fund being "the first ETF powered by a daily call options strategy," in contrast with the monthly call options used by some ETFs.

"We believe that ISPY will be an attractive alternative to popular covered call ETFs, where investors may sacrifice long-term return potential in order to strive for high income," Sapir states.

ISPY's other service providers include: ACA Group as provider of a principal financial officer and treasurer; Citi Fund Services Ohio, Inc. as regulatory administration services provider; JPMorgan Chase Bank, N.A. as administrator, custodian, fund accounting agent, index receipt agent, and securities lending agent; PricewaterhouseCoopers LLP as independent accounting firm; Ropes & Gray LLP as counsel; and SEI Investments Distribution Co. as distributor and principal underwriter. 

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