ProShares Large Cap Core Plus (CSM) Covered Calls

The ProShares Large Cap Core Plus (CSM) is an exchange-traded fund that provides enhanced exposure to the U.S. large-cap equity market. It tracks the RAFI Dynamic Large-Cap Index, which uses a fundamental weighting methodology—selecting and weighting companies based on metrics like cash flow, dividends, and book value—rather than traditional market capitalization.

You can sell covered calls on ProShares Large Cap Core Plus to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for CSM (prices last updated Mon 12:05 PM ET):

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Core Business and Products

The ProShares Large Cap Core Plus (CSM) offers a "smart-beta" approach to broad U.S. equity exposure. By utilizing the RAFI (Research Affiliates Fundamental Index) methodology, the fund aims to mitigate the valuation biases inherent in market-cap-weighted indices, where stocks are often over-weighted simply because they have appreciated in price. Instead, CSM weights companies based on their actual economic footprint.

The fund is structured as a passive, fundamental-weighted ETF. This means the portfolio is rebalanced to target stocks that demonstrate high economic scale and value, often resulting in a contrarian tilt that favors "value" characteristics over "growth" characteristics. This makes CSM a strategic core holding for investors who believe that company fundamentals are more predictive of long-term success than market sentiment.

Competitive Landscape

CSM competes against passive, market-cap-weighted giants like the SPDR S&P 500 ETF Trust. Its primary differentiation is the fundamental-weighting strategy, which appeals to investors who want broad market participation but desire a more disciplined approach to avoiding overvalued segments of the market.

Because CSM is a liquid and optionable security, it is effectively used for core portfolio construction. Its optionability allows investors to hedge their broad U.S. market exposure or to generate supplemental income via covered calls, providing a versatile tool for those looking to tilt their core portfolio away from pure momentum.

Strategic Outlook and Innovation

The strategic outlook for CSM is tied to the long-term performance of the U.S. economy and the cyclical rotation between value and growth leadership. By rebalancing toward fundamental value, the fund is structurally positioned to benefit during periods where the market corrects for over-valuation. It remains an evergreen instrument for investors looking to systematically apply value-investing principles to a large-cap core position.

Innovation in this space is focused on the refinement of the fundamental metrics used for screening, ensuring the index remains robust through various economic regimes. CSM continues to provide a sophisticated, rules-based alternative to standard passive indices, helping investors maintain a value-oriented discipline within their equity allocations.

Want more examples? CSL Covered Calls | CSR Covered Calls