In the world of investing, volatility in the market can be a significant source of concern for investors. To address this issue, a new exchange-traded fund (ETF) has been introduced – the Calamos S&P 500 Structured Alt Protection ETF (CPSM). This ETF promises investors “100% downside protection” against losses in the S&P 500 over a one-year period. Matt Kaufman, Calamos’ head of ETFs, played a key role in developing this new product, emphasizing that there are no shortcuts or gimmicks involved in its operation.
The Calamos CPSM ETF operates by entering into three different options positions. Investors in the fund are limited in their ability to capture gains from the S&P 500, as the options work together to provide full protection against any losses in the index. This structured approach aims to deliver the upside potential of the S&P 500 while capping losses and ensuring 100% capital protection over a 365-day period. At the end of the year, the options reset and continue to be a part of the ETF’s portfolio.
Investors interested in the Calamos CPSM ETF should be aware of its annual expense ratio, which stands at 0.69%. In order to take advantage of the full downside protection offered by the fund, investors are advised to make their purchase on the day the ETF starts trading. While day one presents the best opportunity for receiving 100% protection, there may still be opportunities to invest on subsequent days as well. This unique approach to protecting against market volatility is part of a larger initiative by Calamos, with plans to launch a total of 12 structured protection ETFs in the coming year.
Final Thoughts
Overall, the introduction of the Calamos S&P 500 Structured Alt Protection ETF represents a new and innovative way for investors to shield themselves from market risks. By combining options strategies and capital protection, this ETF provides a unique investment opportunity for those looking to navigate the uncertainties of the market. As with any investment, it is crucial for investors to carefully assess their own risk tolerance and investment goals before considering the Calamos CPSM ETF as part of their portfolio.