Calamos Unveils Two New ETFs with Downside Protection Features

Calamos Investments Introduces New ETFs for Investors

Calamos Investments LLC, a renowned leader in alternative asset management, has recently launched two noteworthy Exchange-Traded Funds (ETFs). These ETFs, named the Calamos S&P 500 Structured Alt Protection ETF™ -- January (CPSY), and the Calamos Russell 2000 Structured Alt Protection ETF™ – January (CPRY), offer investors unique investment opportunities with a 100% downside protection over one year coupled with attractive upside cap rates.

Key Features of Calamos ETFs

The newly introduced CPSY ETF has announced an impressive upside cap rate of 7.57% for its one-year outcome period. Following closely, the CPRY ETF showcases a higher upside potential with a cap rate of 9.59%. This capped return enables investors to navigate market fluctuations with a level of security, as both funds provide complete downside protection if held throughout the outcome period.

Comprehensive Investment Strategies

Calamos' Structured Protection ETF suite is a leading product in the market, effectively combining decades of expertise in alternatives, risk management, and options investing. This innovative approach caters to financial advisors and individual investors seeking capital-protected growth strategies that align with major equity indexes.

Understanding the Cap Rates

The upside cap represents the maximum return investors can achieve from their investment in these funds over the designated outcome period. This year, the CPSY ETF aims to provide returns aligned with the SPDR® S&P 500 ETF Trust (SPY), while CPRY tracks the iShares Russell 2000® ETF (IWM) based on the performance of the Russell 2000 Index. Such structured investments not only promise enhanced returns but also offer a safeguard against market downturns.

Benefits of Holding Calamos ETFs

Investors who choose to hold either the CPSY or CPRY for over a year may benefit from tax efficiencies. Gains in these ETFs grow tax-deferred and are subject to long-term capital gains tax rates, which can lead to significant tax alpha for investors. Moreover, the annual reset of cap rates further provides opportunities for investors to benefit from changing market conditions.

Investment Management by Experts

The Calamos ETFs are managed by co-CIO Eli Pars and the dedicated Alternatives Team at Calamos. Their collective expertise ensures that investor interests are aligned with the strategic objectives of the funds, reinforcing the management’s commitment to delivering value.

About Calamos Investments

Calamos Investments is a diversified global investment firm well-versed in offering a broad range of innovative investment strategies, including liquid alternatives, convertible securities, and multi-asset strategies. With over $40 billion in assets under management, including more than $17 billion designated for liquid alternatives as recent as November 2024, the firm serves a diverse clientele ranging from financial advisors to individual investors globally.

With headquarters located in the Chicago metropolitan area and additional offices in New York, San Francisco, Milwaukee, Portland, and Miami, Calamos maintains a robust presence in the financial market. For those seeking in-depth insights and updates on the latest offerings, their official website serves as a comprehensive resource for available funds and investment strategies.

Frequently Asked Questions

What are the upside cap rates for CPSY and CPRY?

The CPSY ETF offers an upside cap rate of 7.57%, while the CPRY ETF has a higher cap rate of 9.59% for their respective one-year outcome periods.

How does downside protection work with these ETFs?

Both CPSY and CPRY provide 100% downside protection if the shares are held through the entire one-year outcome period, allowing investors to shield their investments from losses.

Who manages the Calamos ETFs?

The Calamos ETFs are managed by co-CIO Eli Pars and the Alternatives Team at Calamos, who bring extensive experience in alternatives and risk management.

What tax benefits do these ETFs provide?

Gains in the Calamos ETFs grow tax-deferred and are taxed at long-term capital gains rates if held for over one year, providing potential tax advantages for investors.

Where can I learn more about Calamos Investments?

More information about Calamos Investments and their suite of financial products can be found on their official website, where updates and resources regarding their strategies are available.

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