Calamos Structured ETFs Offer Cap Rates with Downside Protection
Exciting New Cap Rates for Calamos Structured ETFs
Calamos Investments LLC is enhancing investment possibilities with the introduction of new cap rates for its structured ETFs. The recent announcement reveals attractive upside cap rates, providing robust coverage for investors seeking exposure to both the S&P 500 and Nasdaq-100 indices.
Overview of CPSU and CPNJ Cap Rates
The Calamos S&P 500® Structured Alt Protection ETF® (CPSU) has set an upside cap rate of 7.33% for its one-year outcome period. This comes after its launch, offering a solid opportunity for investors to gain benefits while mitigating risks.
S&P 500 ETF Mechanics
The CPSU aims to give investors 100% downside protection, allowing them to feel secure about their investments during market fluctuations. This built-in safety net is crucial for many investors who wish to participate in the stock market without the anxiety that often accompanies equity investments.
Moreover, the structure allows investors to take advantage of market recoveries while securing their capital effectively.
Calamos Nasdaq-100 ETF Developments
In addition to the CPSU, Calamos also revealed insights about the Calamos Nasdaq-100® Structured Alt Protection ETF® (CPNJ). Following its first annual outcome period, the CPNJ will reset its cap rate, now positioned at 7.65% for the next year. This adjustment creates an inviting opportunity for those interested in technology and growth sectors.
Strategies Behind the Structured Protection ETFs
The structured protection approach leveraged by Calamos combines decades of expertise in alternatives and risk management. By utilizing tax-efficient ETF structures, these offerings cater to investors looking for liquid, accessible investment options, enhancing the overall portfolio strategy.
Benefits of Investing in Calamos Structured Protection ETFs
Structured Protection ETFs® are particularly appealing as they reset annually, meaning investors will receive refreshed protection along with a new upside cap. This unique strategy allows for continuous evaluation and adjustment based on market dynamics.
Tax Advantages of Long-Term Investments
Another significant advantage is the potential tax benefits associated with long-term holdings. As profits in these ETFs grow tax-deferred, capital gains can be taxed at lower rates provided shares are held for over a year, further improving overall investment efficiency.
Company Profile: About Calamos Investments
Calamos Investments stands out as a leading diversified global investment firm, delivering innovative investment strategies across various asset classes. The firm offers a holistic range of investments, including alternatives, equity, fixed income, and more. With assets under management exceeding $40 billion, it serves a broad clientele from financial advisors and wealth management platforms to individual investors.
The firm has established its presence in multiple cities, including operations in New York, San Francisco, Milwaukee, Portland, and Miami, enhancing its capability to cater to diverse investor needs.
Frequently Asked Questions
What are the benefits of investing in CPSU and CPNJ?
Both ETFs provide 100% downside protection alongside attractive upside caps, making them suitable for risk-averse investors seeking market exposure.
How often do the cap rates reset for these ETFs?
The cap rates for Calamos Structured Protection ETFs reset annually, allowing for regular enhancement of investment conditions.
Are there significant tax advantages when holding these ETFs?
Yes, long-term holdings can result in tax-deferred growth, and gains can be taxed at lower long-term capital gain rates.
Who manages the Calamos ETFs?
The portfolios are managed by Eli Pars, Co-CIO, alongside a dedicated Alternatives Team, contributing their extensive knowledge of alternative investments.
Can I invest in these ETFs through various platforms?
Yes, Calamos products are available through multiple investment platforms, appealing to a wide range of investors seeking structured investment solutions.
About The Author
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