The Latest ETF Designed for Market Volatility Protection

The Latest ETF Designed for Market Volatility Protection

A new Exchange-Traded Fund (ETF) known as the Calamos S&P 500 Structured Alt Protection ETF (CPSM) has recently been introduced to provide investors with a shield against market volatility. This new product, developed by Calamos, offers “100% downside protection” against losses in the S&P 500 over a one-year outcome period.

Calamos’ head of ETFs, Matt Kaufman, played a pivotal role in creating this innovative ETF. Kaufman emphasized that there are no gimmicks or magic involved in the product – it is the result of meticulous planning and strategy. The ETF involves entering into three options positions, which work together to provide investors with a safety net against potential losses in the S&P 500.

Investors in the fund are restricted in their ability to capture gains linked to the S&P 500, as the ETF is designed to cap these gains while ensuring 100% capital protection over a 365-day period. Kaufman highlighted that the options reset at the end of the year, providing investors with continued protection and potential for growth.

The Calamos S&P 500 Structured Alt Protection ETF will have an annual expense ratio of 0.69%, making it a cost-effective option for investors seeking market volatility protection. Kaufman mentioned that in order to fully benefit from the downside protection offered by the fund, investors should consider purchasing it when it debuts in the market. However, opportunities to invest in the ETF may still exist beyond the initial launch date.

This new ETF is just one of the twelve structured protection ETFs that Calamos plans to introduce over the next year. This demonstrates the firm’s commitment to providing investors with innovative products aimed at mitigating the risks associated with market volatility and downturns.

The Calamos S&P 500 Structured Alt Protection ETF offers a unique opportunity for investors to safeguard their investments against market turbulence. With its carefully crafted options strategy and downside protection features, this ETF has the potential to appeal to a wide range of investors looking for a balanced and secure investment option in a volatile market environment.

Global Finance

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