Calamos Investments LLC, a renowned manager of alternative investment strategies, has announced its plan to launch the Calamos S&P 500 Structured Alt Protection ETF – July (CPSJ) on July 1, 2024. This new offering comes in direct response to robust investor demand for protected growth solutions, following the successful introduction of their first Structured Protection ETF, CPSM, on May 1, 2024. Recognizing the appeal of such innovative financial products, Calamos has decided to list new capital-protected strategies on the S&P 500 every month, rather than the initially planned quarterly rollouts.
© FNEWS.AI – Images created and owned by Fnews.AI, any use beyond the permitted scope requires written consent from Fnews.AI
John Koudounis, President and CEO of Calamos, expressed his enthusiasm for this development, citing the exceptionally positive feedback from clients regarding their Structured Protection ETF suite. He highlighted Calamos’ longstanding expertise in alternatives and options-based strategies, noting that today’s investors appreciate the efficiency and accessibility offered by the ETF structure for risk-managed solutions. Koudounis emphasized that this move is a natural extension of Calamos’ commitment to delivering value to their clients through innovative financial products.
The Calamos Structured Alt Protection ETF suite represents a blend of Calamos’ decades-long proficiency in alternatives and options investing with the benefits of a liquid, cost-effective, and tax-efficient ETF structure. The upcoming CPSJ aims to provide investors with 100% downside protection if held through the one-year outcome period, from July 1, 2024 to June 30, 2025. The expected cap range for this ETF is projected to be between 9.2% and 9.7% over the specified period, based on the price return of the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index.
© FNEWS.AI – Images created and owned by Fnews.AI, any use beyond the permitted scope requires written consent from Fnews.AI
The annual expense ratio for CPSJ is set at 0.69%, making it an attractive option for investors seeking both protection and growth. The portfolio will be managed by Co-CIO Eli Pars and the established Alternatives Team at Calamos. By focusing on the S&P 500 Index and MerQube Capital Protected US Large Cap Index for benchmarking, CPSJ promises a robust performance framework tailored to meet investor expectations.
One of the most appealing aspects of the Structured Protection ETFs is their tax efficiency. Gains within an ETF grow tax-deferred and will be taxed at long-term capital gain rates if held for more than one year. This tax-deferred growth can offer significant tax alpha, allowing investors to maximize their returns over the long term. Investors who hold shares beyond the one-year outcome period can continue to benefit from refreshed protection against negative returns each year, making CPSJ a viable component of a diversified investment strategy.
Beyond the launch of CPSJ, Calamos has outlined an extensive schedule for its Structured Protection ETFs. The launch sequence began with CPSM on May 1, 2024, which offered a 9.8% upside cap and 100% downside protection over a one-year period. It was followed by CPNJ on June 3, 2024, targeting the Nasdaq 100 with a 10.2% initial cap. On July 1, alongside CPSJ, Calamos will introduce CPRJ, focusing on the Russell 2000, with an estimated cap range of 10.5% to 11.2%. This rolling launch schedule ensures that investors have access to monthly opportunities to invest in these structured protection strategies.
Koudounis pointed out that the transition to monthly offerings is a strategic response to cater to the rising interest and demand for these ETFs. By doing so, Calamos is not only aligning with investor preferences but also demonstrating its agility and commitment to innovation in the competitive financial markets. CPSJ, along with its predecessors, stands testament to Calamos’ vision of providing sophisticated investment solutions that align with the dynamic needs of today’s investors.
Calamos Investments LLC, headquartered in the metropolitan Chicago area, continues to leverage its strong legacy in alternative investments. The firm’s comprehensive suite of Structured Protection ETFs is designed to offer both novice and seasoned investors a viable path to achieving their financial goals with minimized risk. By prioritizing downside protection while providing upside potential, Calamos is positioning itself as a leader in the burgeoning market of risk-managed investment products.
As the July 1 launch date for CPSJ approaches, investors and financial professionals alike are encouraged to explore the full suite of Calamos Structured Protection ETFs. Detailed information about their features, benefits, and performance metrics is available on platforms like Benzinga.com, providing valuable insights for making informed investment decisions. With each new addition to the lineup, Calamos reaffirms its dedication to delivering cutting-edge solutions that drive growth and secure the financial future of its clients.
The consistent introduction of monthly series of Structured Protection ETFs marks a significant step in the evolution of Calamos’ product offerings. By combining traditional investment strategies with innovative financial engineering, Calamos is setting a new standard in the ETF market. The scheduled rollout of ETFs aligned with major indices underscores the company’s commitment to adaptability and client-centric solutions. Investors seeking stability, growth potential, and tax efficiency now have a compelling set of options to consider with the Calamos Structured Protection ETF suite.
Was this content helpful to you?
