The volatility that has permeated the U.S. economy throughout the year shows no signs of diminishing. Recent reports indicate a lackluster performance in the labor market, raising alarms about a potential economic slowdown. These concerns are compounded by ongoing trade tensions between the U.S. and various global competitors.
This uncertainty extends beyond the domestic economy. The Federal Reserve is currently navigating an unprecedented landscape, facing challenges to its leadership and independence while simultaneously reducing interest rates.
In light of these circumstances, adopting a defensive approach to U.S. equity exposure may be a prudent strategy. During such unpredictable times, prioritizing the preservation of principal could be the most effective way to navigate a complex macroeconomic environment.
CPSL: A Laddered Approach to Equity Exposure
The Calamos Laddered S&P 500 Structured Alt Protection ETF (CPSL) is well-positioned to address these challenges. This fund offers exposure to a laddered portfolio of Calamos S&P 500 Structured Alt Protection ETFs.
The underlying ETFs aim to provide risk-averse exposure to the S&P 500’s performance. After accounting for expenses and fees, these Structured Protection ETFs deliver complete capital protection over their one-year outcome period.
However, capital preservation is not the only benefit these funds offer. They also provide distinct access to the upward momentum of the S&P 500, albeit with an upside cap on potential returns.
Each of the 12 ETFs within CPSL’s portfolio begins and concludes in different calendar months. This structure allows the fund to tap into a variety of rolling time horizons, with each outcome period presenting unique caps and returns each year.
CPSL’s disciplined laddered strategy makes it a compelling choice for those seeking a defensive stance on U.S. equity exposure. The fund’s equity options enable investors to remain engaged with the upward momentum that the S&P may experience across various time horizons.
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Disclosure Information
Before investing, carefully consider the fund’s investment objectives, risks, charges, and expenses. Please refer to the prospectus and summary prospectus for 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.
Investing involves risks. Loss of principal is possible. The Fund(s) face numerous market trading risks, including authorized participation concentration risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, clearing member default risk, correlation risk, derivatives risk, equity securities risk, investment timing risk, large capitalization investing risk, liquidity risk, market maker risk, market risk, non-diversification risk, options risk, premium discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, underlying ETF risk, and valuation risk. For a detailed list of fund risks, see the prospectus.
FUND-OF-FUNDS RISK. Shareholders of the Fund will experience investment returns that differ from those of an Underlying ETF. The Fund does not itself pursue a defined outcome strategy, nor does it provide downside protection against SPY losses. Because the Fund typically does not purchase an Underlying ETF on the first day of a Target Outcome Period, it is unlikely that the stated outcome of the Underlying ETF will be realized by the Fund. The Fund will continuously be exposed to the investment profiles of each of the Underlying ETFs during their respective Target Outcome Periods. The Fund, with its aggregate exposure to each of the Underlying ETFs, may have investment returns that are inferior to those of any single Underlying ETF or group of Underlying ETFs over any given time period. Between the semi-annual rebalance period of the Index, because the Fund is not equally weighted on a continuous basis, it may be exposed to one or more Underlying ETFs disproportionately compared to others. In such cases, the Fund will be subject to the over-weighted performance of such Underlying ETF.
As a shareholder in other ETFs, the Fund bears its proportionate share of each ETF’s expenses, subjecting Fund shareholders to duplicative expenses.
There are no assurances the Underlying ETFs will successfully provide the sought-after protection. The outcomes that the Underlying ETFs seek to provide may only be realized if you hold shares on the first day of the outcome period and continue to hold them until the last day, approximately one year later. There is no guarantee that the outcomes for an outcome period will be realized or that the Underlying ETFs will achieve their investment objectives. If the outcome period has begun and the underlying ETF has increased in value, any appreciation of the Fund(s) due to increases in the underlying ETF since the commencement of the outcome period will not be protected by the sought-after protection, and an investor could experience losses until the underlying ETF returns to its original price at the start of the outcome period. The Underlying ETFs are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the Fund(s) for the outcome period, before fees and expenses. If the outcome period has begun and the Underlying ETFs have increased in value to a level near their individual Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one outcome period to the next. Unlike the Underlying ETFs, the Fund itself does not pursue a target outcome strategy. The protection is only provided by the Underlying ETFs, and the Fund itself does not offer any stated downside protection against losses. The Fund will likely not receive the full benefit of the Underlying ETF downside protections and could have limited upside potential. The Fund’s returns are limited by the caps of the Underlying ETFs.
Cap Rate – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period. Protection Level – Amount of protection the Fund is designed to achieve over the Days Remaining.
Outcome Period – The defined length of time over which the outcomes are sought.
The S&P 500 Price Index (SPX) tracks the price return of the S&P 500 Index, which is generally considered representative of the U.S. stock market.
Unmanaged index returns, unlike fund returns, do not reflect fees, expenses, or sales charges. Investors cannot invest directly in an index.
The “S&P 500” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and S&P Global, and has been licensed for use by Calamos Advisors LLC (“CAL”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and sublicensed for certain purposes by CAL. Calamos S&P 500 Structured Protection ETFs are not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or S&P Global. Neither S&P Dow Jones Indices nor S&P Global make any representation or warranty, express or implied, to the owners of the Calamos S&P 500 Structured Protection ETFs or any member of the public regarding the advisability of investing in securities generally or in Calamos S&P 500 Structured Protection ETFs particularly or the ability of the S&P 500 to track general market performance. S&P Dow Jones Indices and S&P Global’s only relationship to CAL concerning the S&P 500 is the licensing of the Index and certain trademarks, service marks, and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 is determined, composed, and calculated by S&P Dow Jones Indices or S&P Global without regard to CAL or the Calamos S&P 500 Structured Protection ETFs. S&P Dow Jones Indices and S&P Global have no obligation to consider the needs of CAL or the owners of Calamos S&P 500 Structured Protection ETFs in determining, composing, or calculating the S&P 500. Neither S&P Dow Jones Indices nor S&P Global is responsible for and has not participated in the determination of the prices and amounts of Calamos S&P 500 Structured Protection ETFs or the timing of the issuance or sale of Calamos S&P 500 Structured Protection ETFs or in the determination or calculation of the equation by which Calamos S&P 500 Structured Protection ETFs are to be converted into cash, surrendered, or redeemed, as the case may be. S&P Dow Jones Indices and S&P Global have no obligation or liability in connection with the administration, marketing, or trading of Calamos S&P 500 Structured Protection ETFs. There is no assurance that investment products based on the S&P 500 will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
NEITHER S&P DOW JONES INDICES NOR [THIRD PARTY LICENSOR] GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE [INDEX] OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] MAKE NO EXPRESS OR IMPLIED WARRANTIES AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY [LICENSEE], OWNERS OF THE [LICENSEE ETF], OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE [INDEX] OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR [THIRD PARTY LICENSOR] BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND [LICENSEE], OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
STRUCTURED ALT PROTECTION ETF and STRUCTURED PROTECTION ETF are trademarks of Calamos Investments LLC.
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