With so much uncertainty on all fronts, now may be a good time to consider adding the Calamos Alternative Nasdaq & Bond ETF (CANQ ) to a portfolio. Utilizing an alternative strategy to ETF investing, the fund keeps investors in the game with equity exposure to Nasdaq-100® companies while seeking to limit downside and delivering income with a diversified fixed-income allocation.
A Multifaceted Strategy Gains Traction
As of June 30, 2024, CANQ’s NAV has risen over 7% since the fund’s inception in February. A closer look at CANQ’s strategy can help to illuminate how the fund has achieved such good results. This provides capital appreciation, risk-adjusted returns, and current income, all within a single investment.
CANQ enables investors to access players within the Nasdaq-100 by investing in a wide variety of equity options. Equity exposure for the fund may be achieved through various means. That includes equity ETFs, FLEX Options, equity stocks, and LEAPS Options, among others. By targeting exposure to the Nasdaq-100, CANQ can offer the long-term returns and growth many of the market’s top earners offer.
CANQ truly stands out through its fixed-income strategy, which includes investment-grade debt securities and bond ETFs, among other possibilities. The benefits of this bond exposure in an equity ETF are twofold. First, the fixed-income assets can bolster the long-term equity strategy by adding monthly income. Second, the bond exposure helps keep CANQ diversified and mitigates risk. For example, should the Nasdaq-100 enter a period of downside volatility, CANQ’s fixed-income foundation can help temper the downturn while providing monthly coupons.
By utilizing an active strategy, the Calamos team can deliver on CANQ’s multifaceted approach and potentially deliver stronger returns down the line.
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. It 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. They allow investors to customize key contract terms like strike price, style, and expiration date while achieving price discovery in competitive, transparent auction 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. It 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.
