Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both ISPY and ITWO fall intoTier 4: Harvest. This suggests they share a similar risk profile and volatility expectation.
| Metric | ISPY | ITWO |
|---|---|---|
| Total Return (1Y) | 10.81% | 22.04% |
| NAV Change (1Y) | 3.24% | 12.60% |
| Max Drawdown | -20.42% | -28.16% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
ISPY (ProShares S&P 500 High Income) is a options-based income fund managed by ProShares. It focuses on generating income through strategic holdings. With $1.3B in assets under management, this fund has been operational since its inception.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
ITWO (ProShares Russell 2000 High Income) is a options-based income fund managed by ProShares. It focuses on generating income through strategic holdings. With $178.5M in assets under management, this fund has been operational since its inception.
Strategy: Generates enhanced income through covered call options on equity holdings, trading upside potential for premium income.
In the head-to-head battle of ISPY vs ITWO, the choice depends on your specific goal. ITWO wins for Immediate Income with a 9.44% yield. However, ITWO is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
ISPY
Annual Yield: 7.57%
$630/mo
($7,566/year)
Frequency: monthly
ITWO
Annual Yield: 9.44%
$787/mo
($9,442/year)
Frequency: monthly
Income Gap: ITWO generates $1,876/year more than ISPY on the same $100k investment.
Over 20 years, that's $37,520 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. ITWO has delivered a superior Total Return of 22.04% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
ISPY (More Resilient)
Max Drawdown: -20.42%
-$20,420
Worst unrealized loss
ITWO (More Volatile)
Max Drawdown: -28.16%
-$28,160
Worst unrealized loss
Protection Value: ISPY saved investors $7,740 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: ISPY demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.