ProShares S&P 500 High Income ETF

ISPY

Market cap $1.19B

Market watchers and advisors have sounded the alarm about a huge wave of Baby Boomer retirements for years. With those individuals now reaching retirement age en masse, however, many are finding themselves without the financial assets they had expected.

ProShares S&P 500 High Income ETF (ISPY) employs a daily 1DTE covered call strategy on an S&P 500-replicating portfolio. ISPY offers a low 0.56% expense ratio, balancing daily option writing costs and supporting long-term capital appreciation. ISPY's lower yield (~8.5% TTM) reduces structural NAV erosion risk compared to higher-yielding peers like XDTE.

ProShares S&P 500 High Income ETF is rated a buy, best used as a defensive hedge in flat or choppy markets. ISPY offers an 8.3% starting yield via an OTM option-writing strategy, but total return upside is capped in strong bull markets. The fund's distributions are variable and largely tax-efficient, with 93% funded by return of capital year-to-date.

Looking at your portfolio and feeling a distinct lack of income? Whether those just starting out or those close to retirement, investors of all types can benefit from a little more income coming from their investments.

As 2025 draws to a close, investors and advisors will be considering their tax-loss harvesting opportunities. By selling some investments at a loss, those investors can reduce their overall tax bills next year.

Covered call strategies have become a very popular fund type in recent years. By leaning on the options market, covered call funds offer high levels of income but can limit upside.

For the past decade, exchange trade funds (ETF) that track major stock exchanges have done very well serving as wealth building platforms for millions of investors.

Investors looking to generate income from their portfolio have myriad investment choices, ranging from simple, like buying dividend stocks, to more complex, like using options. If you don't like to complicate your life, you probably won't want to delve into options.

ProShares S&P 500 High Income ETF offers a daily covered call strategy, providing potential for greater upside capture than peers with monthly covered calls. ISPY's lower expense ratio (0.55%) and monthly distributions make it an attractive option for income-focused investors seeking diversification in their portfolios. Compared to XYLD and SPYI, ISPY demonstrates more upside participation than XYLD but less nimbleness than actively managed SPYI, with a current yield near 10.4%.

ETFs with a covered call yield boost component have become popular in recent years.