Calamos Investments has added another fund to its suite of downside protection ETFs.
The Calamos S&P 500 Structured Alt Protection ETF – August (CPSA ) provides 100% downside protection to the S&P 500 with an initial cap rate of 8.74% over a one-year outcome period, beginning August 1.
CPSA joins the Calamos S&P 500 Structured Alt Protection ETF – July (CPSJ ), as well as other Calamos Structured Protection ETFs. The suite combines the firm’s alternatives, risk management, and options investing expertise with the liquid, cost-effective and tax-efficient ETF structure.
“Calamos has redefined downside protection using ETFs with its growing suite. Many advisors are looking to have lower risk equity exposure,” said Todd Rosenbluth, head of research for VettaFi.
The fund was launched in response to growing demand for capital-protected solutions. This is particularly relevant as election-related risks influence equity market volatility, John Koudounis, Calamos president and CEO, said in a statement.
How to Use CPSA for Downside Protection
The fund’s initial cap rate of 8.74% is for a one-year outcome period. However, shares of Calamos Structured Protection ETFs can be held indefinitely.
See more: Skip the Volatility With Structured Protection ETFs
CPSA resets annually, offering investors a new upside cap with refreshed protection against negative returns in its reference asset over the subsequent 12-month period, according to a statement from the firm.
If shares are held longer than one year, they can deliver significant tax alpha. Potential gains will grow tax-deferred and will be taxed at long-term capital gains rates, according to the statement.
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