When equity investors try to collect monthly income, it is frequently done through monthly dividend payments.
While dividend payments can be beneficial for providing gradual income, they come with a degree of risk. If the invested equities are underperforming, the investor faces both long-term downside risk and a lack of monthly returns.
Even though this may seem like a tricky quandary, Calamos Investments offers a straightforward solution. With the Calamos Alternative Nasdaq & Bond ETF (CANQ ), investors can merge large-cap equities with monthly bond income.
Broad Portfolio Benefits
Through a diversified strategy merging equities and bond investing, CANQ can offer investors a wide variety of benefits:
- Using FLEX Options, CANQ provides access to potential upside to some of the Nasdaq-100’s top performers. Exposure is maintained through buying and selling options on various equities and equity ETFs. This can lead to mitigated risk and strong long-term returns through capital appreciation.
- With a foundation in bond investment, the fund can generate monthly yield. The fund can help mitigate overexposure and potential downsides by seeking yield through bonds. This comes with the added benefit of diversifying CANQ’s portfolio with various bonds.
- As an actively managed ETF, CANQ can position assets and maneuver investments with the goal of capitalizing on the current market. Calamos Investments has decades of experience in using alternative strategies and managing risk.
By using CANQ, investors can achieve exposure to the Nasdaq-100 with the benefit of de-risking monthly income. Alternatively, this fund could fit into an income-seeking portfolio that wants to opt for higher potential income.
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":https://www.calamos.com/resources/ 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 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.
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).
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
2020 Calamos Court | Naperville, IL 60563
866.363.9219 | www.calamos.com | [email protected]
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Calamos and Calamos Investments are registered trademarks of Calamos LLC.
