On this week’s episode of ETF Prime, Nate Geraci hosted a detailed discussion featuring Matt Kaufman, the global head of ETFs for Calamos Investments about the Calamos Autocallable Income ETF (CAIE ), the first auto callable ETF on the market, which launched in June. David Mann, head of ETF product and capital markets at Franklin Templeton, also joined the podcast. He discussed Franklin Templeton’s achievement of surpassing $50 billion in global ETF assets and much more.
Matt Kauffman on Autocallable Mechanics
CAIE has quickly become Calamos’ most popular ETF, surpassing $300 million in assets under management in just a couple of months. According to Kaufman, auto callable ETFs are structured similarly to bonds but linked to equity indices, paying monthly income and returning principal if the underlying equity does not fall below a predefined barrier.
Throughout the interview, Geraci asked clarifying questions on autocallable mechanics, coupon drivers, and risk factors for better investor understanding. He also stressed the importance of transparency and investor education, especially as product complexity increases.
Kaufman explained the mechanics, including reference indices, coupon and principal barriers (e.g., 40% downside thresholds), and a “laddered” approach to diversify risk. CAIE’s coupon rates have recently exceeded 14%, reflecting the tradeoff between higher income and exposure to deep equity market tail risk with limited upside potential.
The conversation contrasted autocallable ETFs with more familiar covered call and equity premium income ETFs, noting that CAIE offers more stable payouts and tax advantages, with nearly all coupons treated as return of capital. Kaufman emphasized that advisors often use CAIE as an equity or high-yield bond replacement, as its volatility profile tracks the S&P 500 over time.
Kaufman also previewed the upcoming Calamos US Tech Autocallable Income ETF (CAIQ), which tracks the NASDAQ 100 and offers potentially higher income due to increased index volatility, while maintaining a diversified laddered portfolio structure.
David Mann on Franklin Templeton’s ETF Growth and Market Positioning
Mann highlighted the drivers behind this growth, including a broad lineup of smart beta, index, and active strategies — with particular success in active ETFs and single-country funds.
Mann noted strong inflows into flagship funds such as the Franklin International Low Volatility High Dividend ETF (LVHI ) and the Putnam Focus Large Cap Value ETF (PVAL ). He explained that regulatory changes and investor demand for proven active strategies have contributed to active ETF growth.
Mann also shared cautionary insights regarding the newly approved ETF share class structure, suggesting its impact might be limited compared to the momentum behind active ETFs.
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