#United States #Chicago #Calamos Investments #S&P 500 #Structured ETF

Calamos Investments Announces New Cap Rate for S&P 500 ETF

Calamos Investments LLC, a distinguished player in the alternatives investment space, has revealed significant updates regarding its Calamos S&P 500® Structured Alt Protection ETF™ (CPSM). As the firm concluded its inaugural annual outcome period on April 30, 2025, they are set to implement a new cap rate starting May 1, 2025. This move is designed to provide investors with robust protection against potential losses in the S&P 500, alongside an appealing upside for the coming year.

Key Details of the Update

The CPSM has reset its upside cap rate to 7.00%, a figure that symbolizes the maximum percentage return an investor might expect while benefiting from comprehensive downside protection over the ensuing year. This strategic decision is particularly noteworthy in light of market volatility, where capital preservation becomes a priority for many investors.

Comprehensive Downside Protection

The unique feature of this structured ETF lies in its commitment to delivering 100% downside protection against negative returns on the S&P 500 index during the one-year outcome period. This approach resonates well with investors looking for stability amidst uncertain market conditions, ensuring they are shielded from adverse movements in the reference asset's price.

Portfolio Management and Tax Efficiency

The management of this ETF falls under the expertise of co-chief investment officer Eli Pars and the seasoned Alternatives Team at Calamos. The structured protection offered through this ETF is fortified by decades of risk management and options investing experience. Furthermore, gains accrued via the ETF maintain their tax-deferred status, with long-term capital gains taxation applicable for those holding onto their investments beyond the one-year threshold.

Annual Expense Ratio and Performance Comparison

Calamos has also disclosed that the ETF maintains an annual expense ratio of 0.69%. This is particularly compelling when juxtaposed against other structured investment products, making it a cost-effective choice for prudent investors. The CPSM will be benchmarked against the SP 500® Index and the MerQube Capital Protected US Large Cap Index, ensuring a clear yardstick for performance evaluation.

A Look Forward

The structured protection ETFs are designed to reset annually, fostering a perpetually updated investment landscape for stakeholders. As each outcome period concludes, investors are presented with a fresh cap and protection parameters—a setup that emphasizes flexibility and responsiveness to market dynamics. Importantly, holding these shares over a longer term can deliver significant tax benefits, making it an attractive option for long-term investors seeking growth without the immediate tax implications.

About Calamos Investments

Calamos Investments stands at the forefront of the global investment landscape, characterized by its commitment to innovative and sustainable investment solutions. The firm manages an impressive $40 billion in assets under management, with over $18 billion attributed to liquid alternatives as of March 31, 2025. This breadth of offering reflects the firm's dedication to serving a diverse clientele, from financial advisors and pension funds to individual investors. Headquartered in the Chicago metropolitan area, Calamos also operates in multiple major cities, including New York and San Francisco.

Prospective investors are urged to consider the fund's objectives, risks, charges, and expenses before proceeding. The full details and specific conditions can be accessed through their prospectus, ensuring comprehensive understanding ahead of any investment commitment.

In conclusion, Calamos's latest cap rate adjustment for its S&P 500 ETF marks a significant advance in investor protection and performance potential, setting a strong foundation for the year ahead.