Lately, it’s been a great time to be an investor in the Nasdaq-100®.
On the day after the 2024 U.S. elections, the Nasdaq-100 Index closed at an all-time high, following a single-day climb of 2.7%. These results are, in part, a bet by investors that the upcoming change in federal leadership could create a better investment environment for large caps.
This isn’t the only good news for the Nasdaq-100, either. The Federal Reserve has again opted to cut interest rates, increasing enthusiasm for companies to expand their operations.
As such, it makes a great deal of sense for investors to stay engaged with the Nasdaq-100. However, it’s always prudent to mitigate risk as well, especially given uncertainty regarding upcoming federal policies.
Blend Equity and Fixed-Income Gains with CANQ
Calamos Investments offers a potential solution to de-risk your Nasdaq-100 exposure—the Calamos Alternative Nasdaq & Bond ETF (CANQ), offering an intriguing investment opportunity, mixing Nasdaq-100 equity exposure with fixed income. This one-two punch lets you tap into equity returns while diversifying and locking in a monthly yield with an active fixed-income strategy.
CANQ offers Nasdaq-100 exposure through the careful use of FLEX Options. Unlike Structured Outcome products, CANQ’s equity exposure has no upside cap, which helps the fund stand out compared to other ETFs offering risk-adverse Nasdaq-100 exposure.
Additionally, the fixed-income overlay generates a monthly yield for investors and lowers direct exposure to the equity market, allowing the fund to still perform in market downturns.
Right now, the fund is offering compelling results on both the fixed-income and equity fronts. CANQ’s since inception return was 15.95% as of Nov. 14, 2024. Moreover, the fund generated a 30-day SEC yield of 4.75% as of Oct. 31, 2024.
For more news, information, and analysis, visit the Alternatives Channel.
Disclosure Information
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.
Risks of investing in the Calamos Alternative Nasdaq & Bond ETF include risks associated with: Authorized Participant Concentration Risk: Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund, and none of those Authorized Participants is obligated to engage in creation and/or redemption transactions; Debt Securities Risk: Debt securities are subject to various risks, including interest rate risk, credit risk and default risk; Equity Securities Risk: The securities markets are volatile, and the market prices of the Fund’s securities may decline generally; FLEX Options Risk: The Fund may invest in FLEX Options issued and guaranteed for settlement by The Options Clearing Corporation (“OCC”). FLEX Options are customized option contracts that trade on an exchange but provide investors with the ability to customize key contract terms like strike price, style and expiration date while achieving price discovery in competitive, transparent auctions markets and avoiding the counterparty exposure of over-the-counter options positions; High Yield Risk: High yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit and liquidity risks; LEAPS Options Risk: The Fund’s investments in options contracts may include long-term equity anticipation securities known as LEAPS Options. LEAPS Options are long-term exchange-traded call options that allow holders the opportunity to participate in the underlying securities’ appreciation in excess of a specified strike price without receiving payments equivalent to any cash dividends declared on the underlying securities; Liquidity Risk – FLEX Options: In the event that trading in the underlying FLEX Options is limited or absent, the value of the Fund’s FLEX Options may decrease; Liquidity Risk – LEAPS Options: In the event that trading in the underlying LEAPS Options is limited or absent, the value of the Fund’s LEAPS Options may decrease; Market Maker Risk: If the Fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of Fund Shares; Market Risk:The risk that the securities markets will increase or decrease in value is considered market risk and applies to any security; New Fund Risk: The Fund is a recently organized investment company with a limited operating history; Non-Diversification Risk: The Fund is classified as “non-diversified” under the 1940 Act; Options Risk: The Fund’s ability to close out its position as a purchaser or seller of an over-the-counter or exchange-listed put or call option is dependent, in part, upon the liquidity of the option market; Other Investment Companies (including ETFs) Risk: The Fund may invest in the securities of other investment companies to the extent that such investments are consistent with the Fund’s investment objective and the policies are permissible under the 1940 Act.
Nasdaq® and Nasdaq-100, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Calamos Advisors LLC. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund(s).
FLEX® Options and LEAPS® Options are registered trademarks of Cboe Global Markets.
The Nasdaq-100 Index® is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index.
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
2020 Calamos Court | Naperville, IL 60563
866.363.9219 | www.calamos.com | [email protected]
2024 Calamos Investments LLC. All Rights Reserved.
Calamos and Calamos Investments are registered trademarks of Calamos LLC.
