Outpace Traditional Bond Yields With Calamos ETFs

While these bond strategies may achieve decent results, investors may be able to tap into higher income elsewhere. One particularly attractive avenue for portfolio yield is alternative income ETFs.

These funds can enable investors to access yield beyond that of traditional indexes. Along with income potential, these funds can also help diversify an investor’s source of capital appreciation.

With decades of experience managing alternative strategies, Calamos Investments offers several strategies for investors looking to think outside the box. Two Calamos funds, in particular, stand out as competitive options for potentially bolstering investor income.

First on the list is the Calamos CEF Income & Arbitrage ETF (CCEF B-). CCEF seeks to invest in closed-end funds offered at notable discounts. By doing so, the fund aims to simultaneously deliver income and capital appreciation.

Closed-end funds can present a particularly attractive opportunity for investors looking to build a more diversified portfolio, and CCEF generates a yield that is largely uncorrelated to the bond market’s ongoing conditions.

While many bond strategies offer yields in the 4%–5% range, CCEF provides distinctly stronger results. As of January 31, 2025, the fund has a 30-day SEC yield of 7.20%.

Another fund worth considering for yield-seekers is the Calamos Alternative Nasdaq & Bond ETF (CANQ C+). This fund blends fixed income and Nasdaq-100 exposure into a singular portfolio.

The lion’s share of CANQ’s portfolio is comprised of a well-diversified selection of fixed-income securities. Notably, this includes significant investments in several different fixed-income ETFs.

CANQ’s diversification only grows more potent with its equity exposure. Along with FLEX® Options investments, the fund allocates to specific companies within the Nasdaq-100, including sought-after household names like Costco, Netflix, and Apple.

Much like CCEF, CANQ also offers competitive returns compared to other fixed-income ETFs. As of January 31, 2025, CANQ has a 30-day SEC yield of 5.14%.

Beyond even yield, both funds routinely outpace traditional bond index annual returns. The above chart highlights how CANQ and CCEF are offering 12-month returns that are more than double those of the Bloomberg Agg.

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 and is not insured or guaranteed by 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, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.  

Risks of investing in the Calamos CEF Income & Arbitrage ETF include risks associated with (1) the Fund’s investment in closed-end fund shares;(2) the closed-end funds’ investments; and (3) any other investments of the Fund, including investments in ETFs, BDCs, and derivative instruments. The shares of closed-end funds may trade at a discount or premium to, or at, their NAV. The securities of closed-end funds may be leveraged. As a result, the Fund, may be exposed indirectly to leverage through an investment in such securities. An investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of its shares) will be diminished. In addition, closed-end funds are allowed to invest in a greater amount of illiquid securities than open-end mutual funds. Investments in illiquid securities pose risks related to uncertainty in valuations, volatile market prices, and limitations on resale that may have an adverse effect on the ability of the fund to dispose of the securities promptly or at reasonable prices. The Fund may invest in BDCs, which typically operate to invest in, or lend capital to, early stage-to-mature private companies as well as small public companies. The Fund’s investment in shares of ETFs subjects it to the risks of owning the securities underlying the ETF, as well as the same structural risks faced by an investor purchasing shares of the Fund, including authorized participant concentration risk, market maker risk, premium-discount risk and trading issues risk. Derivatives are instruments, such as futures and forward foreign currency contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered more speculative than other types of investments.

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, and 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 but provide investors with the ability to customize key contract terms like strike price, style and expiration date while achieving price discovery in competitive, transparent auctions 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 levels of 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: In the event that 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.   

S-Network Composite Closed-End Fund Index (SNCEFCT) measures the performance of the total closed-end fund universe.

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).  

FLEX® Options and LEAPS® Options are registered trademarks of Cboe Global Markets. 

The Nasdaq-100 Index® is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index. 

Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.

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NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE  

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