Calamos Launches Innovative ETFs with Downside Protection

Author: Caleb Price Updated: 04-01-2025 07:43 AM

Exciting New ETFs from Calamos Offering Unique Protection

Calamos Investments recently made waves in the financial markets with the launch of two innovative Exchange-Traded Funds (ETFs). These funds, namely the Calamos S&P 500® Structured Alt Protection ETF™ and the Calamos Russell 2000® Structured Alt Protection ETF™, are making an impact by providing investors with a novel approach to equity investing.

Overview of the Structured Protection ETFs

The Calamos S&P 500® Structured Alt Protection ETF™ is designed to provide a significant upside cap rate of 7.78% within a one-year outcome period. Likewise, the Calamos Russell 2000® Structured Alt Protection ETF™ offers an impressive upside cap rate of 9.42%. Both funds incorporate advanced strategies to protect investors against potential downturns in the respective indices.

Benefits of Investing in Structured Protection ETFs

Investors will find that these ETFs not only shield against losses but also offer attractive growth opportunities. With a focus on cost-effective and tax-efficient investment strategies, Calamos combines decades of experience in alternatives and risk management into these innovative products.

Understanding How the ETFs Work

The unique structure of these ETFs allows for 100% downside protection. This means that investors can hold these funds without the fear of losing their initial investments over a specified outcome period of one year. Such protection is pivotal, especially in volatile market conditions.

Investment Strategy and Management

Managed by Co-CIO Eli Pars and the expert Alternatives Team at Calamos, these ETFs utilize complex financial instruments to manage risk while seeking returns. The funds are aligned with well-known benchmarks, such as the S&P 500 and the Russell 2000, and are carefully designed to cater to various investor needs.

Tax Considerations for Investors

One of the standout features of Calamos’ Structured Protection ETFs is the tax advantages they offer. Gains accumulate tax-deferred, meaning that investors can potentially enjoy a favorable tax position if they hold their investments for a longer period, particularly beyond one year when long-term capital gains tax rates apply.

Conclusion: Why Choose Calamos’ ETFs?

With a robust asset base exceeding $41 billion, Calamos Investments is well-positioned to provide diverse and innovative investment solutions. The introduction of the Structured Protection ETFs represents an exciting development for investors looking for growth while safeguarding capital. By offering these unique products, Calamos is paving the way for a new era of investing with a focus on protection against uncertainty.

Frequently Asked Questions

What are the upside cap rates for the new Calamos ETFs?

The Calamos S&P 500® Structured Alt Protection ETF™ offers a 7.78% cap rate, while the Calamos Russell 2000® Structured Alt Protection ETF™ features a 9.42% cap rate.

How does downside protection work in these ETFs?

Both ETFs are designed to provide 100% downside protection, meaning that investors' initial capital is safeguarded if held throughout the one-year outcome period.

Who manages the Calamos ETFs?

The ETFs are managed by Co-CIO Eli Pars along with a dedicated Alternatives Team trained in risk management and investment strategies.

What tax advantages do these ETFs provide?

Gains in these ETFs are tax-deferred, and if held for longer than one year, they may be taxed at lower long-term capital gains rates.

What is the investment focus of Calamos?

Calamos Investments specializes in diverse strategies that include alternatives, multi-asset, equity, and fixed-income solutions, designed to meet varied client needs.

About The Author

Hey there I'm Caleb Price, a writer and financial specialist who loves to assist others in understanding the financial world. Having years of practical experience and a solid background in finance, my area of expertise is converting difficult financial ideas into useful, doable insights for my blog and publications. My goal with my writing is to give readers the information and assurance they need to successfully negotiate their financial journeys.

My ability to interact with a wide range of people—from novices starting their investing journey to seasoned investors looking for new approaches—has come from contributing to several financial blogs. Making money approachable and understandable is my goal; this will enable you to make wise choices and realize your financial objectives. We appreciate you coming along on this path to success and financial empowerment on Investors Hangout.

Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.