Calamos Continues ETF Expansion with the Launch of the Calamos Alternative Nasdaq & Bond ETF (Ticker: CANQ)
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Insights
The introduction of the Calamos Alternative Nasdaq & Bond ETF (CANQ) represents a noteworthy development for investors seeking diversification with a focus on tech-heavy Nasdaq-100 constituents. The ETF's strategy to blend options-based equity exposure with fixed income assets aims to balance growth potential with income generation, which could be appealing in volatile market conditions. This dual approach may provide a hedge against market downturns while still allowing participation in the upside of large-cap technology stocks.
From a financial perspective, the tax-efficient ETF structure is beneficial for investors looking to minimize their tax liabilities on investment returns. The active management component of CANQ implies that the fund managers will employ strategic decisions in real-time, which can adapt to changing market dynamics more effectively than passive index funds. However, it's important to note that active management also introduces a layer of managerial risk and often comes with higher expense ratios compared to passive funds.
Calamos' launch of CANQ is strategically timed as investors increasingly look for innovative investment products that can navigate the complexities of today's financial markets. The product's design aligns with current investor demand for alternative investment strategies that offer both growth and income. By targeting the Nasdaq-100, CANQ taps into a segment known for its robust performance, primarily driven by the technology sector, which has been a significant growth engine in recent years.
It's important to monitor the adoption rate of CANQ among investors, as it could indicate the market's appetite for such hybrid investment products. The performance of CANQ could set a precedent for future ETFs, influencing the development and marketing strategies of similar products. The success of this ETF could also reflect on Calamos' reputation as a liquid alternatives manager, potentially affecting the company's market share and competitive positioning within the ETF landscape.
When examining new investment vehicles like CANQ, it is crucial to consider the regulatory environment. ETFs are subject to specific disclosure and reporting requirements set by regulatory bodies such as the SEC. The active management aspect of CANQ necessitates transparency in the fund's investment strategies and risk management practices. Investors should be aware of the legal framework governing such ETFs to understand their rights and the measures in place to protect their investments.
Additionally, the claim of tax efficiency must adhere to the tax regulations applicable to investment products. If CANQ's tax-efficient structure is as beneficial as suggested, it could influence investor preference, particularly for those in higher tax brackets. However, investors should consult with tax professionals to understand the implications fully.
- CANQ offers uncapped upside to the largest and most recognized Nasdaq-100 stocks, coupled with the income and diversification potential of bonds.
- New active ETF delivers Calamos' decades-long options and risk management expertise in a compelling, tax-efficient ETF structure.
- Launch marks the second ETF of 2024 for Calamos, a leading liquid alternatives manager, with additional ETFs in development.
METRO
"We are excited to bring CANQ to the market and enable investors to reimagine their exposure to the drivers of American innovation represented in the top Nasdaq stocks," said John Koudounis, President and CEO of Calamos Investments. "Calamos is uniquely positioned to deliver our active expertise in both equity options and credit, now inside a highly engineered single ETF."
John P. Calamos, Sr. pioneered the use of convertible bonds and options in the 1970s as a risk management tool during one of the most volatile times in US market history. CANQ is inspired by the founding principles and expertise of the firm, enabling investors to efficiently access the Nasdaq-100 while aiming to mitigate volatility and generate monthly income.
"Through CANQ, we offer risk-managed access to these exciting Nasdaq companies through our intelligent application of FLEX® Options, combined with diversified fixed income and delivered in a cost-effective and tax-efficient ETF vehicle," commented Matt Kaufman, SVP and Head of ETFs.
To learn more about CANQ, visit: www.calamos.com/CANQ.
About Calamos
Calamos Investments is a diversified global investment firm offering innovative investment strategies, including alternatives, multi-asset, convertible, fixed income, private credit, equity, and sustainable equity. With
Calamos Investments LLC, referred to herein Calamos is a financial services company offering such services through its subsidiaries: Calamos Advisors LLC, Calamos Wealth Management LLC, Calamos Investments LLP, and Calamos Financial Services LLC.
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.
Risks of investing in the Calamos Alternative Nasdaq & Bond ETF include risks associated with: Authorized Participant Concentration Risk — Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund, and none of those Authorized Participants is obligated to engage in creation and/or redemption transactions; Debt Securities Risk — Debt securities are subject to various risks, including interest rate risk, credit risk and default risk; Equity Securities Risk — The securities markets are volatile, and the market prices of the Fund's securities may decline generally; FLEX Options Risk — The Fund may invest in FLEX Options issued and guaranteed for settlement by The Options Clearing Corporation ("OCC"). FLEX Options are customized option contracts that trade on an exchange but provide investors with the ability to customize key contract terms like strike price, style and expiration date while achieving price discovery in competitive, transparent auctions markets and avoiding the counterparty exposure of over-the-counter options positions; High Yield Risk — High yield securities and unrated securities of similar credit quality (commonly known as "junk bonds") are subject to greater levels of credit and liquidity risks; LEAPS Options Risk — The Fund's investments in options contracts may include long-term equity anticipation securities known as LEAPS Options. LEAPS Options are long-term exchange-traded call options that allow holders the opportunity to participate in the underlying securities' appreciation in excess of a specified strike price without receiving payments equivalent to any cash dividends declared on the underlying securities; Liquidity Risk - FLEX Options — In the event that trading in the underlying FLEX Options is limited or absent, the value of the Fund's FLEX Options may decrease; Liquidity Risk - LEAPS Options — In the event that trading in the underlying LEAPS Options is limited or absent, the value of the Fund's LEAPS Options may decrease; Market Maker Risk — If the Fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of Fund Shares; Market Risk—The risk that the securities markets will increase or decrease in value is considered market risk and applies to any security; New Fund Risk — The Fund is a recently organized investment company with a limited operating history; Non-Diversification Risk — The Fund is classified as "non-diversified" under the 1940 Act; Options Risk—The Fund's ability to close out its position as a purchaser or seller of an over-the-counter or exchange-listed put or call option is dependent, in part, upon the liquidity of the option market; Other Investment Companies (including ETFs) Risk — The Fund may invest in the securities of other investment companies to the extent that such investments are consistent with the Fund's investment objective and the policies are permissible under the 1940 Act.
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
© 2024 Calamos Investments LLC. All Rights Reserved. Calamos® and Calamos Investments® are registered trademarks of Calamos Investments LLC.
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SOURCE Calamos Investments
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