Calamos S&P 500 Structured Alt Protection ETF - August (CPSA)

Overview

The Calamos S&P 500 Structured Alt Protection ETF - August (CPSQ) seeks to provide investors with exposure to the S&P 500 Index while also providing a defined level of downside protection. It utilizes a structured options strategy to achieve this objective, aiming to protect against market declines up to a specified buffer, while participating in potential upside growth, subject to a cap. The fund holds flex options on the S&P 500. The Fund will only invest in standardized exchange options, FLEX options, and other ETFs, and will not invest directly in physical commodities or other digital assets.

Reputation and Reliability

Calamos Investments is a well-established investment management firm with a long history in the financial industry. It is known for its expertise in alternative investment strategies and risk management.

Management Expertise

Calamos has a team of experienced portfolio managers and options specialists who manage the ETF. They have a deep understanding of options strategies and market dynamics.

Goal

To provide exposure to the S&P 500 Index while providing a defined level of downside protection.

Investment Approach and Strategy

Strategy: The ETF employs a structured options strategy using FLEX options on the S&P 500. This involves buying and selling options to create a defined outcome profile with downside protection and upside participation, subject to a cap.

Composition The primary assets held by the ETF are FLEX options on the S&P 500 Index. Cash or other short-term investments are also held to collateralize the options positions.

Market Share: Data not available to calculate specific market share as a new/niche product.

Total Net Assets (AUM): 75880000

Key Competitors

• Innovator S&P 500 Buffer ETF (BJAN)
• Nationwide Risk-Managed Income ETF (NUSI)
• Simplify US Equity PLUS Convexity ETF (SPCX)

Competitive Landscape

The competitive landscape consists of other ETFs offering downside protection strategies, which is evolving rapidly. CPSQ differentiates itself with its specific structured options approach and August expiration. CPSQ potentially offers a more defined outcome compared to some competitors, but might have higher expense ratios or be less liquid.

Historical Performance: Limited historical performance data is available due to the fund's recent inception. Performance will depend on the S&P 500's performance and the effectiveness of the options strategy.

Benchmark Comparison: The benchmark is the S&P 500 index, but the fund's performance will deviate due to the options strategy employed to provide downside protection and capped upside.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume is moderate, which may result in slightly wider bid-ask spreads.

Bid-Ask Spread

The bid-ask spread can vary but remains reasonable.

Market Environment Factors

Market conditions, particularly volatility and interest rate movements, significantly impact the pricing and effectiveness of the options strategy. S&P 500 index's performance plays a crucial role.

Growth Trajectory

The growth trajectory is dependent on investor demand for defined outcome strategies and the ETF's ability to effectively manage its options positions.

Competitive Edge

CPSQ's competitive advantage lies in its defined outcome strategy, offering investors a specific level of downside protection and capped upside participation. This can appeal to investors seeking to mitigate risk while still participating in market gains. Calamos' expertise in options strategies provides another advantage. The August expiration also provides specificity for short-term strategies.

Volatility

Volatility depends on the S&P 500 and the options market and will vary over time. The structured strategy aims to reduce volatility relative to direct S&P 500 exposure.

Market Risk

Market risk is primarily related to the S&P 500's performance and the potential for losses beyond the defined downside protection level. There is also option risk.

Ideal Investor Profile

The ideal investor is someone seeking exposure to the S&P 500 with a defined level of downside protection and a willingness to accept capped upside participation. Investors who are risk-averse and want to manage downside risk might find this ETF appealing.

Market Risk

CPSQ is suitable for long-term investors seeking downside protection or tactical investors looking to take advantage of specific market conditions within a defined timeframe.

Calamos S&P 500 Structured Alt Protection ETF - August (CPSQ) offers exposure to the S&P 500 with a structured options strategy designed to provide a defined level of downside protection while capping upside potential. It is managed by Calamos, known for expertise in alternative strategies. The fund is suitable for investors seeking downside protection and a defined outcome, with reasonable management fees and moderate trading volume. Given its defined-outcome approach, it may appeal to risk-averse investors, as the ETF combines the S&P 500 market exposure with risk management. New investors should consider the ETF's August expiration date when making investment decisions.

Data Sources:

• Calamos Investments Website
• ETF.com
• SEC Filings

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.