ProShares VIX Mid-Term Futures ETF (VIXM) Covered Calls

ProShares VIX Mid-Term Futures ETF provides long exposure to the S&P 500 VIX Mid-Term Futures Index. The fund offers investors a way to target the volatility of the S&P 500 by holding a portfolio of fourth, fifth, sixth, and seventh-month VIX futures contracts. Designed as a strategic hedging tool, VIXM aims to capture the "fear gauge" over a longer time horizon than short-term volatility products, typically exhibiting less extreme decay but lower daily sensitivity.

You can sell covered calls on ProShares VIX Mid-Term Futures ETF 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 VIXM (prices last updated Tue 4:16 PM ET):

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Core Business and Products

ProShares VIX Mid-Term Futures ETF (VIXM) is a specialized exchange-traded fund that tracks the S&P 500 VIX Mid-Term Futures Index. Unlike short-term volatility ETFs that trade the first and second-month VIX futures, VIXM manages a rolling position in "mid-term" futures (months 4 through 7). This strategy is designed to provide exposure to expected stock market volatility while mitigating the severe "contango" effects (negative roll yield) often found in the front-month contracts.

The fund is structured as a commodity pool and primarily holds exchange-traded VIX futures contracts and cash equivalents. As of early 2026, VIXM manages approximately $73 million in assets. It is frequently used by institutional and sophisticated retail investors as a portfolio insurance tool, as volatility often has a strong negative correlation with the S&P 500. By focusing on the mid-term curve, VIXM offers a "smoother" ride than short-term VIX products, though it still carries significant risk and is not intended as a long-term buy-and-hold investment.

Competitive Landscape

VIXM operates in the high-stakes volatility segment of the ETF market. It differentiates itself by its position on the futures curve; while it is less explosive than front-month funds during a sudden crash, it tends to retain its value better during periods of market calm. VIXM is fully optionable, allowing traders to use spreads or covered calls to manage the cost of holding a volatility hedge. However, liquidity in VIXM options is generally lower than that of the massive front-month products.

Key peers and related volatility vehicles include:

1. ProShares VIX Short-Term Futures ETF: The short-term sibling to VIXM, offering more aggressive daily moves but higher decay.
2. iPath Series B S&P 500 VIX Short-Term Futures ETN: A major front-month volatility peer with extremely high liquidity.
3. ProShares Ultra VIX Short-Term Futures ETF: A leveraged 1.5x product for aggressive short-term tactical volatility plays.
4. ProShares Short VIX Short-Term Futures ETF: An inverse peer used to bet on declining volatility.
5. iPath Series B S&P 500 VIX Mid-Term Futures ETN: A direct mid-term competitor structured as an exchange-traded note.

Strategic Outlook and Innovation

The strategic utility of VIXM in 2026 remains centered on "tail risk" management. In an era of algorithmic trading and rapid market swings, mid-term volatility exposure is used by managers to protect against sustained bear markets rather than intraday spikes. VIXM is often incorporated into "risk-parity" or "crisis alpha" strategies that seek to profit when traditional equity and bond correlations break down.

Innovation for the fund focuses on the efficient rolling of futures contracts to minimize transaction costs and tracking error. The management team at ProShares monitors the VIX futures curve (term structure) to ensure the fund maintains its target maturity profile of five months. While VIXM does not pay a regular dividend, it remains a critical component of the "alternative" asset class, providing a transparent and liquid way to trade market sentiment without the complexities of a direct futures account.

Want more examples? VIV Covered Calls | VIXY Covered Calls