Michael Sapir and his Mid-Atlantic fund firm's team are celebrating a big milestone for a product suite. The trio of index funds recently crossed into 10-figure AUM territory.

Michael Lynn Sapir ProShare Advisors, ProFund Advisors CEO

Yesterday (June 3), Mo Haghbin, managing director and head of strategic ETFs at ProShares [profile], revealed that last Thursday (May 29) the firm's three high income ETFs surpassed $1 billion in combined AUM. Those ETFs are:

the ProShares Nasdaq-100 High Income ETF (IQQQ on the Nasdaq);

the ProShares Russell 2000 High Income ETF (ITWO on the Cboe BZX Exchange Inc.); and

the ProShares S&P 500 High Income ETF (ISPY on the Cboe BZX).

IQQQ, ISPY, and ITWO now have about $1.007 billion in combined AUM, and they each come with an expense ratio of 55 basis points. Bethesda, Maryland-based ProShare Advisors serves as investment advisor to all three funds.

ISPY launched on December 18, 2023. It now has $807.78 million in AUM.

IQQQ debuted on March 18, 2024. It now has $154.37 million in AUM.

ITWO's inception date was September 4, 2024. It now has $44.73 million in AUM.

Michael Neches and Devin Sullivan, senior portfolio managers at ProShares, have PMed all three funds since their debuts. Each ETF has a different index provider and index:

ITWO is designed to track the Cboe Russell 2000 Daily Covered Call Index, from index provider FTSE Russell;

IQQQ is designed to track the Nasdaq-100 Daily Covered Call Index, from index provider Nasdaq, Inc.; and

ISPY is designed to track the S&P 500 Daily Covered call index, from index provider S&P Dow Jones Indices LLC (SPDJI).

The ProShares team contrasts their high income ETF approach (in which the funds track indexes built on daily covered call options) with that of other "traditional covered call ETFs." Haghbin notes that investors seeking income "often face a difficult trade-off: sacrificing upside for higher yields."

"Our High Income ETFs represent a compelling solution, allowing investors to pursue both their income and growth objectives," Haghbin states, while also reiterating the firm's commitment "to innovation and to providing investors with products built to meet their evolving needs."

ISPY, IQQQ, and ITWO are each series of ProShares Trust. The trio's other service providers include:

ACA Group as provider of a principal financial officer and a treasurer;

Dechert LLP as counsel;

JPMorgan Chase Bank, N.A. as custodian, index receipt agent, securities lending agent, and transfer agent;

PricewaterhouseCoopers LLP as independent accounting firm; and

SEI Investments Distribution Co. as distributor.

 

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