ISPY ETF

ProShares S&P 500 High Income ETF aims to provide both income and capital growth by following the S&P 500 Daily Covered Call Index. It offers a 9% dividend yield with monthly payments, making it attractive for investors looking for income and exposure to S&P 500 stocks. However, its dependence on return of capital for these payments raises questions about the sustainability of the dividends, so investors should be careful until a full annual report is released.

ISPY uses a covered call strategy on the S&P 500, earning money from option premiums while limiting gains in a rising market. Unlike many other covered call funds that write monthly at-the-money calls, ISPY writes out-of-the-money calls on a daily basis. As a result, the fund has been doing better than other similar covered call ETFs.

ISPY's daily call options strategy provides better potential for gains than monthly options. When compared to other S&P 500 covered call funds, ISPY stands out for its strong balance of capital growth and returns, along with tax-efficient payouts and manageable fees. Although it has limited downside protection and some third-party risks, ISPY's reliable performance and steady distributions could make it the top choice among S&P 500 covered call funds.

ISPY's daily call option strategy has done better than regular monthly covered call ETFs, achieving an 11.24% gain and a 19.81% return on investment in 2024. By investing 80% in S&P 500 companies and using daily call options, ISPY generates significant income while closely following market performance. Even with market risks, ISPY provides high-single digit yields, making it appealing for investors looking for income.

The ProShares S&P 500 High Income ETF uses daily covered calls on the S&P 500 Index to provide high returns for investors. Since it started, ISPY has done better than the popular JEPI ETF because its daily call options help it take advantage of more gains. However, in falling markets, ISPY may perform worse since it gets less option premium to help offset losses.

ProShares S&P 500 High Income ETF (ISPY) offers enhanced income compared to SPDR S&P 500 ETF (SPY). That ETF is reviewed in detail. JPMorgan Equity Premium Income ETF (JEPI) would be considered a competitor and is well known. I also review this ETF. ISPY started in late 2023 and has outperformed JEPI so far in 2024. While a few months doesn't mean long-term outperformance, I still give the ISPY ETF a Buy rating.