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Calamos Launches Groundbreaking Structured Protection ETFs

Calamos Investments, a prominent player in the field of alternative investments, has recently unveiled its plans for two innovative Structured Protection ETFs. Set to launch on April 1, 2025, these new products aim to provide investors with unique exposure to key stock market indices while ensuring complete downside protection over a one-year period.

Overview of the New ETFs

1. Calamos S&P 500® Structured Alt Protection ETF® (CPSP)
- Estimated Upside Cap: 7.21% - 7.50%
- Outcome Period: One Year (April 1, 2025 – March 31, 2026)
- Reference Asset: SPDR® S&P 500® ETF Trust (SPY)
- Downside Protection: Offers 100% downside protection if held throughout the one-year outcome period.
- Annual Expense Ratio: 0.69%
- Managed by: Co-CIO Eli Pars and the Alternatives Team.

2. Calamos Russell 2000® Structured Alt Protection ETF® (CPRA)
- Estimated Upside Cap: 8.32% - 9.33%
- Outcome Period: One Year (April 1, 2025 – March 31, 2026)
- Reference Asset: iShares Russell 2000® ETF (IWM)
- Downside Protection: Similar to CPSP, it offers 100% downside protection for the duration of the holding period.
- Annual Expense Ratio: 0.69%
- Managed by: Co-CIO Eli Pars and the Alternatives Team.

A Strategic Step for Investors

The Structured Protection ETF suite is not just an introduction but a strategic advancement in Calamos’ philosophy of melding alternatives with traditional investing. Each ETF combines the firm’s extensive expertise in risk management and options investing with the cost-effective and liquid structure of ETFs. Calamos’ decision to include a full suite of downside protection and defined upside potential underscores its commitment to navigating volatile markets strategically.

These ETFs are particularly appealing for investors looking to secure their investments against potential market downturns while still being able to participate in market upswings. The downside protection ensures that even if market conditions worsen, investors will not suffer losses, provided they retain their investments for a full year.

Why Structured Protection Matters

The introduction of these ETFs marks a significant development for investors in a world characterized by unpredictability and market fluctuations. The 100% downside protection feature serves to reassure investors who may be apprehensive about entering the market amidst economic uncertainty. Moreover, with the structured products resetting annually, investors will have the opportunity to reevaluate their positions and adjust for the subsequent year based on the market outlook.

Investors in these funds will also benefit from tax efficiencies, as returns will grow in a tax-deferred manner, only subject to long-term capital gains rates if held for over a year. This is an attractive proposition for those engaged in long-term strategic planning in their investment portfolios.

About Calamos Investments

Founded in the Chicago metropolitan area, Calamos Investments is a diversified investment firm with a robust portfolio that encompasses various innovative strategies, including alternatives, multi-asset, private credit, and sustainable equity investments. As of February 28, 2025, the firm boasts assets under management exceeding $41 billion, highlighting its significant stature in the financial landscape. With offices in multiple locations including New York and San Francisco, Calamos serves a broad client base ranging from financial advisors to individual investors.

In conclusion, the Calamos S&P 500® and Russell 2000® Structured Alt Protection ETFs set for launch in 2025 are positioned to offer investors a novel pathway to engage with market opportunities, balancing potential gains with essential risk mitigation. This innovative approach is a testament to Calamos's commitment to providing robust investment solutions in an increasingly complex financial world.