Navigating Market Uncertainty: A Defensive Approach
In the face of economic uncertainty, investors are seeking strategies to safeguard their portfolios. But here's where it gets tricky: the Federal Reserve's actions have created a unique challenge, as it battles external pressures while adjusting interest rates.
A Strategic Defense:
A cautious approach to U.S. equity exposure might be the key to weathering the storm. During these volatile times, a strategy focused on preserving capital could be the best way to navigate the complex macroeconomic landscape.
Introducing CPSL:
The Calamos S&P 500 Structured Alt Protection ETF (CPSL) is designed to offer a unique solution. CPSL provides exposure to a carefully constructed portfolio of ETFs, each with a distinct focus on the S&P 500.
Risk-Adverse Exposure:
These underlying ETFs aim to provide a safer way to track the performance of the S&P 500, ensuring capital protection after expenses and fees over a one-year period. But there's more to these funds than just preservation.
Upside Potential:
While these funds prioritize capital preservation, they still offer access to the S&P 500's growth. However, a twist lies in the fact that potential returns are capped, creating a unique risk-reward dynamic.
Diverse Time Horizons:
CPSL's portfolio consists of 12 ETFs, each starting and ending on different calendar months. This structure allows the fund to access various rolling time horizons, resulting in different caps and returns annually.
A Defensive Edge:
CPSL's strategic laddered approach positions it as a powerful defensive tool for U.S. equity exposure. Investors can stay connected to the S&P's upward trajectory across various time frames while managing risk.
Stay Informed:
For more insights and analysis, visit the Alternatives Content Hub. But before you invest, there are some crucial considerations...
Disclosure and Risks:
Investing in the fund comes with risks, including the possibility of losing money. The fund's performance is not guaranteed, and it is not a bank deposit insured by the FDIC. Market volatility can amplify these risks. Specific risks include market trading, liquidity, derivatives, and sector risks, among others.
Fund-of-Funds Risk:
Shareholders may experience different returns compared to the underlying ETFs. The fund does not guarantee downside protection against SPY losses and may not achieve the stated outcomes of the underlying ETFs. The fund's returns are influenced by the performance of each underlying ETF during their respective periods.
The Underlying ETFs:
These ETFs aim to provide protection, but there are no guarantees. The sought-after outcomes are only realized if shares are held for the entire outcome period. The upside return is capped, and investors purchasing near the cap may face limited gains and potential losses. The fund itself does not provide downside protection, and its returns are limited by the underlying ETFs' caps.
Key Terms:
- Cap Rate: Maximum potential return for investors over the outcome period.
- Protection Level: The amount of protection the fund aims to provide over a specified period.
- Outcome Period: The defined time frame for achieving the desired outcomes.
Index Tracking:
The S&P 500 Price Index (SPX) reflects the price return of the S&P 500, representing the U.S. stock market. However, index returns do not include fees and expenses, and direct investment in an index is not possible.
Disclaimer:
The S&P 500 is a licensed product, and its use does not imply endorsement or promotion by S&P Dow Jones Indices LLC or its affiliates. The index is determined independently, and they bear no responsibility for the fund's performance or the investment decisions of its owners.
Trademark Notice:
Structured Alt Protection ETF and Structured Protection ETF are trademarks of Calamos Investments LLC.
Contact and Legal:
Calamos Financial Services LLC, the distributor, can be reached at the provided contact details. Calamos and Calamos Investments are registered trademarks.
