ProShares Launches Nasdaq-100 High Income ETF

March 20, 2024 at 08:30 AM EDT

First Nasdaq-100 ETF Powered by a Daily Call Options Strategy

ProShares, a premier provider of ETFs, today launched the ProShares Nasdaq-100 High Income ETF (Nasdaq: IQQQ). With IQQQ, investors can seek high income and target Nasdaq-100 returns over the long term.

“Many investors seeking income have added covered call ETFs to their portfolios. However, conventional covered call ETFs often sacrifice total return to generate high income,” said ProShares CEO Michael L. Sapir. “IQQQ, the first Nasdaq-100 ETF powered by a daily call options strategy, offers investors both the potential for high income and a long-term total return approximating that of the Nasdaq-100.”

Covered call ETFs have attracted more than $78 billion in assets.¹ ProShares pioneered the use of a daily call options strategy in an ETF with ProShares S&P 500 High Income ETF (ISPY), launched in December 2023. With the addition of IQQQ, investors can now access next-generation covered call strategies for the Nasdaq-100 as well as the S&P 500.

ProShares Nasdaq-100 High Income ETF (IQQQ) seeks investment results, before fees and expenses, that track the performance of the Nasdaq-100 Daily Covered Call Index (the “Index”). The Index is designed to replicate the performance of an investment strategy that combines a long position in the Nasdaq-100 Index with a short position in Nasdaq-100 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. IQQQ invests in Nasdaq-100 stocks and uses swap agreements to gain exposure to daily call options.

About ProShares

ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $65 billion in assets. The company is the leader in strategies such as crypto-linked, 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.

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IQQQ and ISPY seek to replicate a daily covered call strategy by investing in equity securities and derivatives. The Funds do not sell (write) call options.

Investing involves risk, including the possible loss of principal. These ProShares ETFs are non-diversified and entail certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), 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 on ProShares.com. 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.

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1 Source: Morningstar. As of February 27, 2024.

There is no guarantee any ProShares ETF will achieve its investment objective. The performance of the Funds may not correspond to the performance of their respective indexes, and the Funds may not be successful in generating income for investors.

Each Fund intends to make distributions each month of an amount that reflects the dividends and call premium income earned by a daily covered call strategy on its index (net of expenses). There can be no guarantee that the Funds will make distributions, and the amount of such distributions, if any, may vary significantly from month to month. A significant portion of such distributions may be characterized as a return of capital.

The S&P 500 Daily Covered Call Index replicates the performance of a covered call investment strategy that combines a long position in the S&P 500 Index with a short position in S&P 500 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.

This is not intended to be investment advice.

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 at ProShares.com.

Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, NDX®, Nasdaq-100 Daily Covered Call™ Index, NDXDCC™, Nasdaq-100 Daily Covered Call Option™ Index, NDXDCCOV™, Nasdaq-100 Daily Covered Call Income™ Index, NDXDCCI™, are registered trademarks of Nasdaq, Inc. (which with its affiliates and third party licensors is referred to as the “Corporations”) and are licensed for use by ProShare Advisors LLC. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

“The S&P 500 Daily Covered Call Index" is a product of S&P Dow Jones Indices LLC and its affiliates and has been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by S&P Dow Jones Indices LLC and its affiliates as to their legality or suitability. ProShares based on the S&P 500 Daily Covered Call Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.