Today’s market landscape calls for a unique approach, such as pairing the upside potential of equities offset by the stability and income provided by bonds.
The rate environment has shifted nearly overnight, fundamentally altering the investment environment we’ve grown accustomed to. Today, bonds may once again offer the income and risk management benefits that were hard to come by when rates were near or at zero. Importantly, today’s interest rate regime creates opportunities for new investment solutions utilizing fixed income.
See more: “Calamos Continues ETF Expansion With CANQ Launch”
The Calamos Alternative Nasdaq & Bond ETF (CANQ) combines upside equity potential while seeking yield and risk mitigation. CANQ seeks to deliver asymmetrical risk/ reward through the uncapped upside potential of Nasdaq-100® stocks with the income and lower risk offered by a bond foundation.
“CANQ offers a creative, deconstructed way to get exposure to companies that are not offering bonds,” Todd Rosenbluth, head of research at VettaFi, said. “We have seen growing demand for covered call ETFs in 2024, but this fund is different than others.”
CANQ Uses a Fixed Income Foundation to Support Risk-Adjusted Returns
The fund seeks to achieve its objective by investing in FLEX options on the Nasdaq-100. This includes an active selection of individual names. A diversified fixed income portfolio comprised of ETFs makes up the remainder of the portfolio. According to Calamos Investments, diversified fixed income aims to generate yields above the risk-free rate.
Calamos believes fixed income exposure is essential in the current rate regime. It can provide bond-like returns for the portfolio when equity markets are down, and the options aren’t exercised. Furthermore, this may make CANQ less volatile than Nasdaq stocks and also provides investors with attractive monthly distributions.
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. There is no insurance or guarantee from 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 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. 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. They allow investors to customize key contract terms like strike price, style, and expiration date while achieving price discovery in competitive, transparent auction 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 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—If 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).
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
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866.363.9219 | www.calamos.com | [email protected]
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Calamos and Calamos Investments are registered trademarks of Calamos LLC.
