#USA #Calamos Investments #Structured Protection ETFs #SP 500 #Chicago, Illinois

Calamos Investments Introduces Innovative Structured Protection ETFs

Calamos Investments LLC has recently unveiled two new Structured Protection ETFs, namely the Calamos S&P 500® Structured Alt Protection ETF™ – December (CPSD) and the Calamos Nasdaq-100® Structured Alt Protection ETF™ – December (CPNQ). Both of these funds are designed to offer investors a unique opportunity for 100% downside protection while providing exposure to two of the major indices: the S&P 500 and Nasdaq-100.

Overview of the New ETFs

Launched on December 2, 2024, the CPSD ETF features an upside cap rate of 8.07% for a one-year outcome period, while the CPNQ ETF offers a slightly higher upside cap rate of 8.67%. These funds not only offer attractive potential returns but also ensure that investors are shielded from losses should market conditions fluctuate negatively during the outcome period.

Key Features

• - 100% Downside Protection: Both ETFs guarantee total protection against losses if the shares are held for the entire one-year period.
• - Attractive Cap Rates: With cap rates that provide a good balance between risk and return, they are designed for investors seeking growth without compromising on safety.
• - Tax Efficiency: Besides the investment features, gains are tax-deferred within the ETF, providing long-term investors with potential tax advantages if held for more than one year.

Annual Expense Ratio: Both funds manage to keep costs in check with an expense ratio of 0.69%, ensuring that fees do not erode investor returns significantly.

The Investment Strategy

Calamos’ approach combines decades of expertise in alternatives and risk management with structured ETFs that navigate through market uncertainties effectively. The CPSD and CPNQ ETFs are intended to be a comprehensive financial tool for both financial advisors and individual investors who are keen on capital preservation and growth strategies tied to leading U.S. equity segments.

Eli Pars, Co-CIO at Calamos, leads the alternatives team managing these funds, reflecting their commitment to delivering innovative investment solutions tailored for modern market challenges.

Investment Implications

These Structured Protection ETFs are designed for monthly entry points into capital-protected investment strategies. They stand out for their systematic reassessment of upside caps and protection each year, offering fresh opportunities based on the prevailing market environment.

Investors can expect that if they hold on to their shares through the duration of the outcome period, they will not only benefit from the upside potential but also enjoy significant tax efficiencies inherent within the ETF structure.

Conclusion

The launch of the Calamos S&P 500® Structured Alt Protection ETF™ and the Calamos Nasdaq-100® Structured Alt Protection ETF™ marks a significant addition to the investment landscape, offering a robust solution for investors looking to balance risk with potential reward in an unpredictable market.

For those considering alternative investment strategies, these ETFs could serve as an excellent vehicle for achieving financial goals while maintaining a risk-averse approach. Stay tuned for more updates from Calamos Investments as they continue to innovate in the realm of finance and investment strategies.