Can ETFs protect against a drop in the markets? The volatile stock market, combined with a large cohort of older investors, has created a demand for products that allow investors to stay invested in the market while providing some protection on the downside. On May 1st, Calamos will launch the Calamos S&P 500 Structured Alt Protection ETF (CPSM), which aims to match the price return of the SPDR S&P 500 ETF Trust (SPY) up to a cap of 9.65%, but also provide 100% protection on the downside. This is the first of 12 Structured Protection ETFs Calamos is launching. These Structured Protection ETFs are designed to avoid losses when the market goes down over a one-year outcome period. These structured protection products are part of a larger group of ETFs that seek to provide some downside protection, and they include products that sell options to generate income (JEPI) as well as so-called “buffered” products that also deliver partial protection against the downside.
Learn more about how these products work this Monday on ETF Edge at 1:10 PM ET when our guests will be Matt Kaufman, head of ETFs at Calamos, and Todd Sohn from Strategas. ETFEdge.cnbc.com
A rising tide of active ETFs could have some floating, others drowning
The space has surged over 20% annually since 2019
Bank on a fin-tech ETF?
Technicals look promising after a long period of underperforming the broader market
Who needs gold when there’s copper?
A different metal with a different story but still sizable returns
