With equity alternatives potentially more valuable than ever, it’s important that investors and advisors consider every option on the table.
Among all the equity alternatives out on the market, autocallables fall under the radar far too often. Given the complex nature of how autocallables work, this shouldn’t come as a particular shock.
Autocallables are investments that provide both yield and long-term principal based on the performance of an equity index. As long as the equity index performs within a specified range, the autocallable will continue to drip income into one’s portfolio.
This gives autocallables an interesting allure as an equity alternative. Autocallable investors can tap into returns similar to that of an equity strategy, along with the perk of additional income. Additionally, autocallables can continue to deliver results if the equity index underperforms, as long as it does not pass down below its barrier level. This flexibility gives autocallables an extra advantage as an equity alternative: The strategy can still deliver income even if the equity market flounders.
Traditionally, the structure of autocallables have made them a tricky tool for investors to easily pick up. However, a new option is available through the flexibility of the ETF wrapper.
CAIE Offers a Laddered Approach to Autocallables
In late June, Calamos Investments launched its Calamos Autocallable Income ETF (CAIE). CAIE looks to provide investors with the perks of autocallables through a laddered portfolio. The fund invests in a mix of 52 or more autocallables, all linked to the price performance of the S&P 500. As long as the S&P 500’s performance doesn’t dip below -40%, investors will continue to receive coupon payments.
This laddered ETF makes it easier than ever for investors to get into the world of autocallables. Along with a straightforward buy-in process, the fund’s moving laddered portfolio means advisors and investors don’t need to worry as much about timing.
CAIE shows attractive early performance with a 14.6% weighted average coupon as of July 3, 2025, and $38.3 million in assets under management as of July 16, 2025. However, this high yield reflects the fund’s exposure to autocallable structures that can result in suspended coupon payments during market downturns and potential principal losses if equity indices fall below the -40% protection barrier at maturity.
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Disclosures
Information contained herein is subject to completion or amendment. 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.
An indication of interest in response to this advertisement will involve no obligation or commitment of any kind.
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.
The principal risks of investing in the Calamos Autocallable Income ETF include: autocallable structure risk, contingent income risk, early redemption risk, barrier risk, authorized participant concentration risk, calculation methodology risk, cash holdings risk, correlation risk, costs of buying and selling fund shares, counterparty risk, credit risk, derivatives risk, equity securities risk, index risk, interest rate risk, investment in a subsidiary, laddered portfolio risk, liquidity risk, market maker risk, market risk, new fund risk, non-diversification risk, premium-discount risk, secondary market trading risk, swap agreement risk, tax risk, trading issues risk, valuation risk, and volatility target index risk.
Autocallable Structure Risk –The Fund’s returns are correlated to the performance of a synthetic portfolio of autocallable notes tracked by the Laddered Autocall Index.
Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index. Total return assumes the reinvestment of income. Current performance may be higher or lower than the performance data shown. Yields represented by trailing 12 month yield for: US Equity- S&P 500; U.S High Yield – Bloomberg US Aggregate Corporate High Yield Index; US 10-year – 10-year US Treasury yield; Equity Premium Income: Cboe S&P 500® 2% OTM BuyWrite Index; Autocallable Income: MerQube US Large Cap Vol Advantage Autocallable Index. MerQube US Large Cap Vol Advantage Autocallable Index is not a proxy for Calamos Autocallable Income ETF (CAIE). The results of the MerQube index will differ to those of CAIE. Investors should consider the risks of investing in CAIE and review the prospectus prior to investing. Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value of an investment will fluctuate so that your shares, when sold, may be worth more or less than their original cost.
Autocallable notes have specific structural features that may be unfamiliar to many investors:
–Contingent Income Risk: Coupon payments from the Autocalls are not guaranteed and will not be made if the Underlying Index falls below the Coupon Barrier on observation dates. This means the Fund may generate significantly less income than anticipated during market downturns.
–Early Redemption Risk: Autocalls in the Portfolio may be called before their scheduled maturity if the Underlying Reference Index reaches or exceeds the Autocall Barrier on observation dates. This automatic early redemption could force reinvestment of that portion of the portfolio at lower rates if market yields have declined.
–Barrier Risk: If the Underlying Reference Index falls below the Protection Level Barrier at the maturity of an Autocall in the Portfolio, that portion of the Portfolio will be fully exposed to the negative performance of the Underlying Reference Index from its initial level. This conditional protection creates a binary outcome that can result in sudden, significant losses if barriers are breached.
Weighted Average Coupon: The weighted average coupon of all autocallables as of last operation date
Total return assumes the reinvestment of income. Current performance may be higher or lower than the performance data shown. Yield represented by trailing 12 month yield for: Autocallable Income: MerQube US Large Cap Vol Advantage Autocallable Index. MerQube US Large Cap Vol Advantage Autocallable Index is not a proxy for Calamos Autocallable Income ETF (CAIE). The results of the MerQube index will differ to those of CAIE.
