Home etftrends.com The Advantages of Calamos Structured Protection ETFs™

The Advantages of Calamos Structured Protection ETFs™

Stubborn inflation, election year turmoil, major overseas wars… It’s a world of increasing uncertainties. Structured protection ETFs, which provide 100% capital protection against market declines. This enables investors to tap into several compelling benefits in these unpredictable times.

Equity exposure with 100% protection that doesn’t miss out on market upside potential

Calamos Structured Protection ETFs provide investors with an innovative strategy that utilizes FLEX® Options. The three-part strategy includes a long put option, long call option, and short call option to create 100% protection for a one-year outcome period and a competitive upside cap.

These ETFs have the potential to provide reinvested income and capital appreciation. This benefits investors who don’t want to miss out on positive market trends. Bolstered by the defensive qualities of the strategy, Structured Protection ETFs can serve as an alternative to other passive equity investment options.

A Cash Relocation Option with Capital Protection

Calamos Structured Protection ETFs can be beneficial for investors seeking to move cash off of the sidelines. The strategy provides a means for investors to reallocate cash toward upside opportunities with mitigated downside risk. Additionally, the tax-friendly nature of the ETF wrapper can help investors generate tax-deferred reinvested income and capital appreciation.

As a portfolio allocation, a structured protection ETF can be slotted in as an alternative to other downside-mitigation strategies. This includes investments like short-term bonds, structured notes, and money market funds.

“We’re seeing people move cash off the sidelines into these types of products. People are trading off their guaranteed 5% money market rate for the chance at a market upside,” said Matt Kaufman, Calamos Investments SVP and Head of ETFs.

A Secure, Flexible Solution for Retirees

Retirees and investors alike who are approaching retirement may also appreciate the benefits of a structured protection ETF. A structured protection strategy can offer capital preservation and growth while a retiree liquidates other assets to cover retirement expenses.

Additionally, the structured protection framework can enable retirees with additional flexibility to work around inflation. The risk-aware protections offered through the strategy can provide opportunities to profit from positive inflation trends while securing investments from potential downsides in the market. For retiree portfolios seeking capital preservation, structured protection ETFs can serve as an alternative to bond investments and target-date funds (both of which can lose principal).

Calamos Structured Protection ETFs is the first suite of its kind to offer upside exposure to the S&P 500®, Nasdaq-100® or Russell 2000® with no downside risk over a one-year outcome period before fees and expenses. The first fund in the series, Calamos S&P 500® Structured Alt Protection ETF – May (CPSM), launched on May 1, 2024.

For more news, information, and analysis, visit the Alternatives Channel.

Disclosure Information

Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.

An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.

*The Calamos Russell 2000 Structured Alt Protection ETFs are currently reflected in an initial SEC filing under the name Calamos Capital Protected Russell 2000 ETFs.​

Investing involves risks. Loss of principal is possible. The Funds face numerous market trading risks, including authorized participation concentration risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, clearing member default risk, correlation risk, derivatives risk, equity securities risk, investment timing risk, large-capitalization investing risk, liquidity risk, market maker risk, market risk, non-diversification risk, options risk, premium-discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, underlying ETF risk and valuation risk. For a detailed list of fund risks see the prospectus.​

Additional Information

There are no assurances the Fund will be successful in providing the sought-after protection. The outcomes that the Fund seeks to provide may only be realized if you are holding shares on the first day of the Outcome Period. It continues to hold them on the last day of the Outcome Period, approximately one year. There is no guarantee that the Outcomes for an Outcome Period will be realized or that the Fund will achieve its investment objective. If the Outcome Period has begun and the Underlying ETF has increased in value, any appreciation of the Fund by virtue of increases in the Underlying ETF since the commencement of the Outcome Period will not be protected by the sought-after protection, and an investor could experience losses until the Underlying ETF returns to the original price at the commencement of the Outcome Period.

Fund shareholders are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the funds’ for the Outcome Period, before fees and expenses. If the Outcome Period has begun and the Fund has increased in value to a level near to the Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one Outcome Period to the next. The Cap, and the Fund’s position relative to it, should be considered before investing in the Fund. The Fund’s website, www.calamos.com, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.

More Information

These Funds are designed to provide point-to-point exposure to the price return of the Reference Asset via a basket of Flex Options. As a result, the ETFs are not expected to move directly in line with the Reference Asset during the interim period.​

Investors purchasing shares after an outcome period has begun may experience very different results than fund’s investment objective. Initial outcome periods are approximately 1-year beginning on the fund’s inception date. Following the initial outcome period, each subsequent outcome period will begin on the first day of the month the fund was incepted. After the conclusion of an outcome period, another will begin.​

FLEX Options Risk

The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset. They may vary due to factors other than the price of reference asset.​

Shares are bought and sold at market price, not net asset value (NAV), and are not individually redeemable from the fund. NAV represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day. Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where fund shares are listed.​

100% capital protection is over a one-year period before fees and expenses.  All caps are pre-determined.

Cap Range – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period. Cap range depicted is the high and low cap rate over the past 15 trading days. Actual cap delivered by the Fund may be different.​

Protection Level – Amount of protection the Fund is designed to achieve over the Days Remaining.

Outcome Period – Number of days in the Outcome Period.

Nasdaq® and Nasdaq-100 are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Calamos Advisors LLC.  The Fund has not been passed on by the Corporations as to their legality or suitability.  The Fund is not issued, endorsed, sold, or promoted by the Corporations.  The Corporations make no warranties and bear no liability with respect to the Fund(s).


Calamos Financial Services LLC, Distributor

Calamos Financial Services LLC​
2020 Calamos Court | Naperville, IL 60563​
866.363.9219 | www.calamos.com | [email protected]
2024 Calamos Investments LLC. All Rights Reserved.​
Calamos and Calamos Investments are registered trademarks of Calamos LLC.​


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