This ETF Has Zero Downside, Literally

The Calamos S&P 500 Structured Alt Protection ETF (NYSE: $CPSM) launched in May 2024, giving 100% downside protection to investors buying at the fund's inception -- in exchange for no dividend and a capped upside (capped at 9.3% after fees, also at inception; caps are fixed via options contracts at inception so investors buying at later prices receive different levels of upside caps and downside protection).

Are no-downside ETFs too good to be true? BBAE CIO James Early digs into the subject with Calamos’ Head of ETFs Mark Kaufman. They talk about Calamos' latest S&P 500 no-downside ETF, and forthcoming suite of others (NASDAQ 100 is next), and a range of topics including:

1) How Calamos uses options to structure these ETFs
2) How the 100% downside protection works with no credit risk
3) What differentiates Calamos’ zero-downside products from competitors'
4) What happens after the one-year term is up
5) What type of investors no-downside ETFs are for

Do your own homework in deciding what investments are right for you, as always.

More from Matt Kaufman and Calamos at: https://calamos.com
More from BBAE at: https://bbae.com