#USA #Chicago #Calamos Investments #S&P 500 #Structured Protection ETF

Calamos Unveils New ETF

Calamos Investments LLC, a prominent name in alternative asset management, has revealed an exciting new financial instrument designed to protect investors during market downturns. The upcoming Calamos S&P 500® Structured Alt Protection ETF (CPSF) is set to launch on February 3, 2025. What sets this ETF apart is its 100% downside protection for investors, ensuring they are safeguarded against declines in the stock market while also offering potential growth.

Understanding the CPSF ETF

The CPSF is structured to provide a unique investment opportunity by combining the benefits of downside protection with the performance potential of the S&P 500 Index. According to the latest announcement, the ETF is projected to have an estimated upside cap range of 7.36% to 7.75% over a one-year outcome period. This means that while investors are shielded from losses, there is still the opportunity for gains, albeit with a cap on the return.

How It Works

The mechanism behind this protection is based on holding the ETF shares through the entire outcome period of one year (from February 3, 2025, to January 30, 2026). During this time, if the market remains unfavorable, investors will not experience any losses. However, if the S&P 500 produces returns exceeding the cap, their earnings will be limited to the upper threshold.

The annual expense ratio for this investment vehicle is set at 0.69%, which is relatively competitive considering the structured support provided. The management team, led by Co-CIO Eli Pars and his alternatives team, will oversee the ETF's operations, focusing on leveraging over four decades of expertise in alternative investments and risk management.

A New Era for Investors

As market volatility becomes more of a concern for investors, instruments like CPSF are poised to be attractive options. This product is particularly appealing to those who are hesitant to encounter market dips but still want exposure to the growth potential of equities. The structured protection model resets annually, allowing investors to reassess and engage with monthly refreshed caps based on market conditions.

Additionally, Calamos emphasizes the tax advantages of this ETF. Gains in the fund grow tax-deferred, meaning investors can hold their shares for over a year to benefit from the lower long-term capital gains tax rates.

In a landscape marked by uncertainty, Calamos Investments, headquartered in the Chicago area, is leading the charge with innovations targeted at creating favorable environments for diverse investors. The firm's comprehensive suite of investment products caters to a wide range of clientele, including financial advisors, pension funds, and individual investors. With over $40 billion in assets under management (AUM), their commitment to delivering innovative strategies is evident.

Conclusion

Calamos' introduction of the S&P 500 Structured Alt Protection ETF marks a significant move towards creating safer investment avenues in a tumultuous market. As potential investors look for alternatives that provide both protection and growth, the CPSF stands poised to attract attention. By combining structured protection with tax efficiency, this ETF exemplifies Calamos' dedication to meeting the evolving needs of its clients.

For more details and to stay updated about the CPSF and other offerings, potential investors can visit Calamos' official website or follow them on their social media channels.