Calamos launches enhanced Nasdaq 100 ETF

Feb 15th, 2024 | By | Category: ETF and Index News

Calamos Investments has launched a new ETF designed to offer investors exposure to top Nasdaq 100 companies, with a focus on minimizing volatility and enhancing income potential.

John Koudounis, President and CEO of Calamos Investments

John Koudounis, President and CEO of Calamos Investments.

The Calamos Alternative Nasdaq & Bond ETF (CANQ US) has been listed on Nasdaq with an expense ratio of 0.90%.

The Nasdaq 100 is the world’s pre-eminent benchmark for the performance of growth-oriented stocks, serving as the underlying reference for numerous financial products that collectively house many hundreds of billions of dollars in AUM.

The index consists of 100 of the largest US and international non-financial companies by market capitalization listed on Nasdaq. It includes companies across major industry groups including computer hardware and software, communications, retail/wholesale trade, and biotechnology.

Following a rollercoaster ride for the Nasdaq 100, which saw a 33% dive in 2022 and a dramatic 55% recovery in 2023, many investors have become increasingly wary about the index’s inherent volatility. Consequently, there has been growing interest among investors for Nasdaq 100 strategies that offer some protection against potential downturns.

Calamos, renowned for its expertise in options-based risk management, has crafted CANQ to deliver on this demand. The fund not only aims to reduce volatility but also offers the advantage of generating some monthly income, addressing the gap left by the traditionally low or non-existent dividends from the tech giants that dominate the Nasdaq 100.

John Koudounis, President and CEO of Calamos Investments, commented: “We are excited to bring CANQ to the market and enable investors to reimagine their exposure to the drivers of American innovation represented in the top Nasdaq stocks. Calamos is uniquely positioned to deliver our active expertise in both equity options and credit, now inside a highly engineered single ETF.”

Investment approach

The actively managed fund blends equity and fixed income strategies for a balanced risk-reward profile, seeking to capture the upside potential of Nasdaq 100 stocks through options while limiting downside risk with a foundation of fixed income investments.

Equity exposure is obtained through options to buy stocks from the Nasdaq 100, equity ETFs, and various index options, including LEAPS and FLEX Options, based on liquidity, market cap, and other factors.

Fixed income investments are chosen for their credit quality, yield, and liquidity, serving as the portfolio’s stable base to generate bond-like returns. The bond sleeve consists of securities beyond US Treasuries, including corporate credit and mortgage- and asset-backed securities, among others, in a bid to generate additional value.

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