Calamos Alternative Nasdaq & Bond ETF (CANQ)

ETF Calamos Alternative Nasdaq & Bond ETF (CNAB): Overview and Analysis

Profile:

CNAB is an actively managed ETF that invests in a diversified portfolio of Nasdaq-100 Index securities and fixed income instruments. It seeks to provide investors with a combination of growth potential and income generation. CNAB uses an alternative, non-traditional approach to investing in these asset classes.

Objective:

The primary investment goal of CNAB is to achieve long-term capital appreciation and current income. It aims to outperform the Nasdaq-100 Index on a risk-adjusted basis over a full market cycle.

Issuer:

Calamos Investments is the issuer of CNAB. The firm has been managing assets since 1977 and has a strong reputation for active management and alternative investment strategies. Its expertise lies in Convertible and High Income strategies, with over $28 billion in assets under management in these areas.

Market Share:

CNAB is a relatively small ETF, with a market share of approximately 0.2% within its category of Nasdaq-100 Index-related ETFs.

Total Net Assets:

As of November 2023, CNAB has approximately $346 million in total net assets.

Moat:

CNAB's competitive advantages include:

• Active Management: The use of an active, alternative investment approach to outperform the Nasdaq-100 Index.
• Experienced Management: The ETF is managed by a team with a strong track record in managing alternative investment strategies.
• Unique Investment Strategy: The combination of Nasdaq-100 Index exposure with fixed income instruments for potential downside protection and income generation.

Financial Performance:

CNAB has delivered positive returns since its inception in 2021. Its performance has outpaced the Nasdaq-100 Index, demonstrating the potential benefits of its actively managed approach.

Growth Trajectory:

The growth trajectory of CNAB is dependent on market conditions and the performance of the Nasdaq-100 Index. However, the ETF's unique strategy and strong management team position it favorably for continued growth.

Liquidity:

CNAB has an average daily trading volume of approximately 30,000 shares, which indicates moderate liquidity. The bid-ask spread is typically tight, suggesting low transaction costs for investors.

Market Dynamics:

Factors affecting CNAB's market environment include:

• Performance of the Nasdaq-100 Index: The ETF's performance is closely tied to the performance of the Nasdaq-100 Index.
• Interest rate environment: Rising interest rates could impact the performance of fixed income instruments held by CNAB.
• Market volatility: Increased volatility could negatively impact the ETF's performance.

Competitors:

Key competitors of CNAB include:

• Invesco QQQ Trust (QQQ) - Market share: 94%
• ProShares UltraPro QQQ (TQQQ) - Market share: 2%
• Direxion Daily NASDAQ-100 Bull 2X Shares (QQQ) - Market share: 1.5%

Expense Ratio:

CNAB's expense ratio is 0.85%, which is slightly higher than the average expense ratio for ETFs in its category.

Investment Approach and Strategy:

CNAB employs a non-traditional approach to investing in the Nasdaq-100 Index and fixed income instruments. The portfolio construction focuses on identifying mispriced securities through fundamental analysis and utilizing options strategies to enhance returns and manage risk.

Key Points:

• Actively managed ETF targeting Nasdaq-100 Index outperformance.
• Combines potential growth with income generation.
• Experienced management team with a focus on alternative strategies.
• Moderate liquidity and competitive expense ratio.

Risks:

• Market risk: CNAB is exposed to the risks associated with the Nasdaq-100 Index and the fixed income market.
• Active management risk: The actively managed approach may underperform the benchmark index.
• Liquidity risk: The ETF's moderate liquidity could make it challenging to buy or sell shares quickly at favorable prices.

Who Should Consider Investing:

CNAB is suitable for investors seeking exposure to the Nasdaq-100 Index with potential for enhanced returns through active management. It also appeals to investors looking for income generation and risk management features through fixed income exposure.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, CNAB receives a 6.5 out of 10 fundamental rating. This indicates a positive overall outlook, with strengths in its unique strategy, experienced management, and growth potential. However, the higher expense ratio and moderate liquidity are considered weaknesses.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Calamos Investments website: https://www.calamos.com/us-en/individual/etfs/calamos-alternative-nasdaq-bond-etf.html
• ETF Database: https://etfdb.com/etf/CNAB/
• Yahoo Finance: https://finance.yahoo.com/quote/CNAB/

Disclaimer: This information is provided for general knowledge and informational purposes only and does not constitute investment advice. Consult with a qualified financial advisor before making any investment decisions.