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

Overview

The Calamos S&P 500 Structured Alt Protection ETF - August (CPSAA) seeks to provide capped exposure to the S&P 500 Total Return Index, while providing downside protection against market declines, resetting annually in August. The fund primarily utilizes flexible exchange (FLEX) options.

Reputation and Reliability

Calamos Investments has a solid reputation as an established asset manager with expertise in options strategies.

Management Expertise

The management team possesses significant experience in structured investment products and options trading.

Goal

To provide investors with capped exposure to the S&P 500 Total Return Index, while seeking to provide downside protection against market declines.

Investment Approach and Strategy

Strategy: The ETF employs a strategy involving FLEX options on the S&P 500 to achieve both upside participation (subject to a cap) and downside protection.

Composition The ETF primarily holds FLEX options contracts on the S&P 500. Cash or cash equivalents may also be held to collateralize the option positions.

Market Share: CPSAA's market share is relatively small compared to broader S&P 500 ETFs, focusing on a niche market segment seeking downside protection.

Total Net Assets (AUM): 37300000

Key Competitors

• Innovator U.S. Equity Buffer ETF - August (TAUG)
• First Trust Cboe Vest U.S. Equity Buffer ETF - August (FAUG)

Competitive Landscape

The competitive landscape includes other ETFs offering buffered or defined outcome strategies. CPSAA differentiates itself through Calamos's established expertise in options. Its disadvantage is having smaller AUM and thus lower liquidity compared to some competitors.

Historical Performance: Historical performance will vary depending on market conditions and the specific cap and buffer in place each August. Data should be analyzed year by year.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 Total Return Index and other buffered ETFs to assess the cost of downside protection relative to upside potential.

Expense Ratio: 0.69

Average Trading Volume

The average trading volume is moderate and has room for improvement to prevent wider bid-ask spreads, making it potentially more expensive to trade.

Bid-Ask Spread

The bid-ask spread may be wider than more liquid ETFs, which can impact the cost of trading, especially for large orders.

Market Environment Factors

Market dynamics are influenced by interest rates, economic growth, and investor sentiment toward risk. Volatility in the S&P 500 directly impacts the value of the ETF's option positions.

Growth Trajectory

The growth trajectory depends on investor demand for defined outcome ETFs and Calamos's ability to effectively manage the option strategy.

Competitive Edge

CPSAA benefits from Calamos Investments' long-standing expertise in options-based strategies, offering a potentially unique combination of S&P 500 exposure with defined downside protection. The fund's structure provides investors with clarity on potential returns and risk management. The use of FLEX options allows for greater customization in structuring the protection and participation. Calamos's established brand and distribution network also contribute to its competitive advantage. However, it is important to note the capped upside participation feature.

Volatility

Volatility is moderate due to the buffer strategy, which aims to reduce downside risk but also limits upside potential.

Market Risk

Market risk is present as the fund's performance is linked to the S&P 500. While downside protection is provided, significant market declines could still result in losses, albeit buffered.

Ideal Investor Profile

The ideal investor is risk-averse, seeking S&P 500 exposure with downside protection, and understands the trade-off of capped upside potential. These are usually investors who are near retirement.

Market Risk

CPSAA is most suitable for long-term investors looking for a more conservative approach to S&P 500 exposure. It may also appeal to those nearing retirement or seeking to protect capital.

The Calamos S&P 500 Structured Alt Protection ETF - August (CPSAA) offers a defined outcome investment strategy, providing capped participation in the S&P 500 with downside protection through FLEX options, resetting annually. Calamos's options expertise positions the fund well, though it faces competition from similar buffered ETFs. While the fund provides downside risk management, the upside potential is capped. Due to its niche focus, CPSAA's market share and liquidity are more modest compared to broad market ETFs. It suits risk-averse, long-term investors seeking a conservative approach to S&P 500 returns.

Data Sources:

• Calamos Investments Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.