At this point, many advisors and investors have come to understand how Calamos Structured Protection ETFs blend equity upside with definitive downside security. However, to fully understand how these funds achieve their objectives of upside participation and downside protection, it helps to know how their outcome periods function.
Many people find extreme market volatility frightening, but volatility makes stocks work long term. Volatility is the unsung hero of your financial health. Without volatility, stock returns would be negative. Buffer funds are an increasingly popular ETF strategy that some retirees believe promises "sure thing" stock investing.
At the beginning of May, Calamos debuted its series of Structured Protection ETFs with the launch of the Calamos S&P 500® Structured Alt Protection ETF™ – May (CPSM). Matt Kaufman, Calamos SVP and Head of ETFs, recently sat down with the VettaFi team to discuss the strategy behind the structured protection lineup.
After a strong five months for the S&P 500 Index in 2024, many advisors thought the remainder of the year would be weaker. While taking profits might make sense to some, there's a range of ETFs to consider helping clients stay in the market.
The Calamos S&P 500 Structured Alt Protection ETF provides 100% downside protection but caps the upside. The ETF had a starting cap rate of 9.81%. This article reviews the ETF and its investment strategy, including a short risk analysis. While I like the concept and own a similar ETF, CPSM gets a Hold rating at this point, especially since the potential gains are less now.
Calamos Investments is expanding into the ETF space, specifically in the 'buffer ETF' niche. Calamos S&P 500 Structured Alt Protection ETF offers 100% downside protection and a capped upside of 9.81%. The fund achieves its goal through the use of customized 'Flex Options' that provide better pricing and downside protection.
On May 1, 2024, Calamos Investments launched the Calamos S&P 500® Structured Alt Protection ETF – May (CPSM). In less than six weeks since the fund's inception, evidence is mounting that the Calamos strategy is paying off.
Buffer ETFs, often regarded as safe investment options for risk-averse investors, aim to mitigate potential losses within a portfolio. However, it's important to note that investors are not entirely shielded from losses when holding buffer ETFs.
When it comes to managing retirement, money matters. A new poll from Gallup highlighted that the largest financial issue concerning Americans is retirement.