Simeon Hyman, Global Investment Strategist for ProShares, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how innovations in the options market may potentially provide investors in covered call funds with greater upside participation in equity markets.
Investors in covered call strategies don’t participate fully in stock market rallies but face downside risk in equity markets. ProShares high-income ETFs implement an innovative covered call strategy by selling options with daily expirations. Daily options can provide the desired income while potentially capturing a larger share of equity market upside. These funds include S&P 500 High Income ETF (ISPY), Nasdaq-100 500 High Income ETF (IQQQ), and Russell 2000 High-Income ETF (ITWO).
The technology sector now holds 35% of US equity market capitalization. Investors concerned about concentration risk and stretched valuations may consider ProShares’ S&P 500 Ex-Technology ETF (SPXT) to continue investing in the broader equity market without exposure to the technology sector.
ProShares recently reached $100 billion in assets under management (AUM). Hyman notes that investor interest in income remains strong, especially when the income isn’t driven by declining rates in the fixed-income sector.
WEBCAST – Advisor Playbook
Join us for the 2025 Advisor Playbook Symposium, designed exclusively for financial advisors. This online event will provide expert insights from thought leaders across the globe. These interactive, educational sessions offer CE credits and are complimentary for financial professionals.
Topics to be covered during the Advisor Playbook include:
- Income Generation Opportunities for 2026
- Trends & Opportunities in Artificial Intelligence
- Geopolitical Outlook
- Current State of Emerging Markets
- Compliance Trends: What Advisors Need to Know
Accepted for 1.5 CFP® / IWI / CFA CE Credits