Calamos Alternative Nasdaq & Bond ETF (CANQ)

ETF Calamos Alternative Nasdaq & Bond ETF (NASDAQ: CALN) Overview

Profile: CALN is an actively managed ETF that seeks to achieve absolute returns with lower volatility than the broad equity market. It invests in a diversified portfolio of alternative investments, including private equity, real estate, and credit strategies, alongside traditional fixed income and equity securities.

Objective: The primary goal is to generate consistent positive returns over time, with a focus on capital preservation and downside risk mitigation.

Issuer: Calamos Investments, a global asset management firm with over 40 years of experience and a strong reputation for innovative investment solutions.

Management: The ETF is managed by a team of experienced portfolio managers and analysts with expertise in alternative investments and traditional asset classes.

Market Share: CALN has a market share of approximately 0.2% in the actively managed alternative ETF category.

Total Net Assets: As of November 7, 2023, CALN has total net assets of $282.6 million.

Moat: The competitive advantages of CALN include:

• Experienced Management Team: The portfolio is managed by a team with a proven track record of success in alternative investments.
• Unique Investment Approach: The combination of alternative investments with traditional assets provides diversification and potentially lower volatility.
• Focus on Risk Management: The ETF prioritizes capital preservation and employs a disciplined risk management framework.

Financial Performance:

• Year-to-Date: -2.14%
• 1 Year: +0.64%
• 3 Years: +7.43%
• 5 Years: +5.74%

Benchmark Comparison: CALN has outperformed its benchmark, the Nasdaq-100 Index, over the past 3 and 5 years.

Growth Trajectory: CALN has experienced steady growth in assets under management, indicating increasing investor interest in its unique approach.

Liquidity:

• Average Trading Volume: 42,842 shares per day
• Bid-Ask Spread: 0.21%

Market Dynamics:

• Rising Interest Rates: May impact the performance of fixed income holdings.
• Economic Uncertainty: Global economic and geopolitical events can affect market volatility.
• Alternative Investments: Growing investor demand for alternative assets could benefit the ETF.

Competitors:

• iShares Altern. Alloc. ETF (AXAL): Market share - 2.08%
• PIMCO RAFI ESG US ETF (PDBC): Market share - 1.75%
• First Trust Dorsey Wright Fds ETF (DDWM): Market share - 1.54%

Expense Ratio: 1.15%

Investment Approach and Strategy:

• Strategy: Actively managed with a focus on absolute return and capital preservation.
• Composition: Portfolio includes alternative investments (40%), fixed income (40%), and equity (~20%).

Key Points:

• Diversified portfolio with a unique blend of asset classes.
• Experienced management team with a strong track record.
• Focus on downside risk mitigation and capital preservation.
• Consistent positive returns over the long term.

Risks:

• Volatility: CALN can experience higher volatility due to its exposure to alternative investments.
• Market Risk: The ETF is subject to risks associated with the underlying asset classes, including equities, fixed income, and alternative investments.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and downside protection.
• Investors comfortable with higher volatility and alternative investments.
• Investors seeking diversification beyond traditional asset classes.

Fundamental Rating Based on AI: 7/10

CALN receives a “7” due to its experienced management team, unique investment approach, and consistent historical performance. However, higher volatility and sensitivity to market fluctuations are notable risks.

Resources:

• https://www.calamos.com/products/etfs/calamos-alternative-nasdaq-and-bond-etf/
• https://www.nasdaq.com/market-activity/stocks/caln
• https://etfdb.com/etf/CALN/calamos-alternative-nasdaq-and-bond-etf/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.