Calamos Launches CPNJ, First ETF to Provide 100% Downside Protection to Nasdaq-100® with a 10.20% Upside Cap Over One Year
Calamos Investments has launched the Calamos Nasdaq-100 Structured Alt Protection ETF (CPNJ), providing 100% downside protection and a 10.20% upside cap over a one-year period from June 3, 2024, to May 30, 2025. This follows the launch of the Calamos S&P 500 Structured Alt Protection ETF (CPSM), which has grown to over $100 million in assets since May 1st. The new ETF offers tax-deferred growth, resetting annually to provide a refreshed upside cap and continued downside protection. Managed by Co-CIO Eli Pars and the Alternatives Team, CPNJ aims to de-risk investments while staying engaged with the Nasdaq-100.
- Launch of CPNJ provides 100% downside protection.
- 10.20% upside cap over a one-year outcome period.
- CPNJ follows the successful launch of CPSM with over $100M AUM.
- ETF structure offers tax-deferred growth with potential tax alpha.
- Managed by experienced Co-CIO Eli Pars and the Alternatives Team.
- CPNJ resets annually, providing refreshed protection and upside cap.
- Annual expense ratio of 0.69% may affect net returns.
- The upside cap of 10.20% may limit potential gains if the market performs exceptionally well.
Insights
Calamos launching the CPNJ ETF is significant because it offers 100% downside protection while capping the upside to
In the context of Calamos’ performance with their S&P 500 Structured Alt Protection ETF™ (CPSM), which amassed over
The introduction of the CPNJ ETF highlights a growing trend towards structured investment products designed for a risk-averse yet growth-seeking audience. This ETF's unique value proposition lies in providing 100% downside protection while allowing for a modest upside cap of
From a market research perspective, the success of Calamos’ previous product, CPSM, indicates a strong market demand for such offerings. The strategic timing of this launch, amidst elevated market valuations, is likely to resonate well with investors looking to safeguard gains without exiting the market entirely. Nevertheless, the downside protection is only effective if the ETF is held for the entire outcome period, which means liquidity constraints could be a consideration for some investors.
- Calamos Nasdaq-100® Structured Alt Protection ETF™ - June (CPNJ) provides tax-deferred capital protected exposure to the leading growth index.
- CPNJ follows the successful launch of Calamos S&P 500 ® Structured Alt Protection ETF™ - May (CPSM), which has grown to more than
$100M - The Calamos Structured Protection ETF™ suite combines Calamos' decades-long alternatives and options investing expertise with the liquid, cost-effective and tax-efficient ETF structure.
METRO
"With the Nasdaq-100 near all-time highs, CPNJ offers a simple way to de-risk while staying invested," said John Koudounis, President and CEO of Calamos Investments. "Our new suite of Structured Protection ETFs is built on our nearly 50-year heritage and expertise in delivering innovative alternative solutions, easily accessible to all investors."
Calamos Nasdaq-100® Structured Alt Protection ETF™ – June (CPNJ) | |
Launch Date | 6/3/2024 |
Ticker | CPNJ |
Initial Cap Rate | 10.20 % |
Initial NAV | |
Outcome Period | 6/3/2024 to 5/30/2025 |
Reference Asset | Price return of Invesco QQQ Trust, Series 1, based on the Nasdaq-100® Index |
Structured Protection | |
Annual Expense Ratio | 0.69 % |
Portfolio Management | Co-CIO Eli Pars and the Alternatives Team |
Benchmarks | Nasdaq-100® Index, Price Return |
Tax Application | Gains in an ETF grow tax-deferred and will be taxed at long-term capital gain rates if held longer than one year |
CPNJ resets annually, offering investors a new upside cap with refreshed protection against negative returns in the Nasdaq-100 over the subsequent 12-month period. If shares are held longer than one year, CPNJ can deliver significant tax alpha as potential gains will grow tax-deferred and will be taxed at long-term capital gains rates. Shares of CPNJ can be held indefinitely.
Learn more about Calamos Nasdaq-100® Structured Alt Protection ETF™ (CPNJ) and the full suite of Calamos Structured Protection ETFsTM. For weekly updates on current caps and protection levels for all of Calamos' Structured Protection ETFs, advisors and investors can subscribe to the Weekly Rate Sheet.
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
The information in each fund's prospectus and statement of additional information) is not complete and may be changed. We may not sell the securities of any fund until such fund's registration statement filed with the Securities and Exchange Commission is effective. Each fund's prospectus and statement of additional information is not an offer to sell such fund's securities and is not soliciting an offer to buy such fund's securities in any state where the offer or sale is not permitted.
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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.
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.
Investing involves risks. Loss of principal is possible. The Fund(s) 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.
There are no assurances the Fund(s) will be successful in providing the sought-after protection. The outcomes that the Fund(s) seeks to provide may only be realized if you are holding shares on the first day of the outcome period and continue 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(s) will achieve its investment objective. If the outcome period has begun and the underlying ETF has increased in value, any appreciation of the Fund(s) 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 fund(s) for the outcome period, before fees and expenses. If the outcome period has begun and the Fund(s) have 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(s). The Fund(s) website, www.calamos.com, provides important Fund information as well information relating to the potential outcomes of an investment in the Fund(s) on a daily basis.
The Fund(s) 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(s) 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(s) 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(s) 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 and 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.
Cap Rate – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period.
Protection Level – Amount of protection the Fund is designed to achieve over the Days Remaining.
Outcome Period – Number of days in the Outcome Period.
STRUCTURED ALT PROTECTION ETF and STRUCTURED PROTECTION ETF are trademarks of Calamos Investments LLC.
Data as of 3/31/24
Calamos Financial Services LLC, Distributor
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SOURCE Calamos Investments
FAQ
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