before their scheduled maturity if the Underlying Reference Index reaches or exceeds the Autocall Barrier on observation dates. This automatic early redemption could force reinvestment of that portion of the portfolio at lower rates if market yields have declined.–Barrier Risk: If the Underlying Reference Index falls below the Protection Level Barrier at the maturity of an Autocall in the Portfolio, that portion of the Portfolio will be fully exposed to the negative performance of the Underlying Reference I ...

Core Insights - The article emphasizes the importance of operational efficiency in practice management for financial advisors, highlighting how it can enhance workflow and client relationships while improving return opportunities without incurring higher costs [1] Group 1: Autocallable Yield Notes - Autocallable yield notes provide monthly income and principal as long as the underlying index performs above a predetermined barrier level, making them a viable option for portfolio yield enhancement [1] - Investing in multiple autocallable notes can be complex, as exposure to a single index can lead to a more market-sensitive income path, and reinvestment risks arise upon maturity [1] Group 2: CAIE Fund - The Calamos Autocallable Income ETF (CAIE) offers a laddered collection of 52 or more autocallables, allowing advisors to access a diverse range of autocallables through a single investment vehicle [1] - CAIE automatically reinvests principal upon maturity of autocallable notes, reducing the time advisors spend on reinvestment decisions [1] - Utilizing funds like CAIE can significantly improve practice management by providing time- and cost-efficient access to the benefits of autocallables [1]

Core Insights - The autocallable income ETFs, particularly the Calamos Autocallable Income ETF (CAIE) and Calamos Nasdaq Autocallable Income ETF (CAIQ), have shown significant success in 2025, raising investor interest for 2026 [1] - These funds utilize autocallable yield notes to provide regular income, long-term principal, and potential risk management [1] Fund Performance - As of January 8, 2026, CAIE has approximately $545 million in net assets, while CAIQ is nearing $60 million [1] - CAIQ's MerQube index has a weighted average coupon of 17.89%, and CAIE's MerQube index has a weighted average coupon of 14.23% [1] Investment Strategy - The autocallable structure is linked to market indices, allowing for income generation as long as the index remains above a predetermined barrier level [1] - Calamos Investments employs a laddered approach, investing in a selection of swap agreements that provide exposure to 52 or more autocallable notes, which helps in managing risk and smoothing income [1] Market Outlook - Despite potential macroeconomic uncertainties affecting indices like the S&P 500 and Nasdaq-100, CAIE and CAIQ are positioned to meet their investment objectives if their indices stay above the barrier levels [1] - Advisors and investors are encouraged to consider autocallable income funds for a more predictable income path in their portfolios [1]

Core Viewpoint - The Calamos Autocallable Income ETF (CAIE), launched on June 25, 2025, has achieved significant milestones in its early trading period, particularly in asset management and income generation [1][2]. Group 1: Fund Performance and Strategy - As of December 29, 2025, CAIE has approximately $511.5 million in assets under management, indicating strong market demand and appeal for the fund within just over six months of its launch [2]. - CAIE aims to provide robust monthly income and potential long-term capital appreciation through a laddered portfolio of autocallable yield notes [3]. - The fund's investment strategy utilizes autocallable yield notes linked to the MerQube US Large-Cap Vol. Advantage Index, which offers exposure to the S&P 500 with a volatility target of 35% [4]. Group 2: Autocallable Notes Features - Autocallables provide income based on the performance of a chosen index, with CAIE's notes featuring a barrier level of -40%. If the index does not fall below this threshold, monthly income is generated [5]. - The structure of autocallables allows for regular income even during periods of underperformance in the S&P 500, making CAIE attractive to certain investors [6]. - As of November 30, 2025, CAIE has achieved a distribution rate of 14.32%, showcasing compelling income results for investors [6].

Core Insights - Demand for equity income strategies remains strong among advisors and investors, serving as a vital component for portfolio diversification and risk management [1] - Covered call ETFs are viewed as a potential source of equity income, but they often lack transparency regarding the call option strategies employed by fund managers [2] - Autocallable income ETFs, such as the Calamos Nasdaq Autocallable Income ETF (CAIQ), provide a clearer understanding of their income-generating strategies compared to traditional covered call ETFs [3] Fund Overview - CAIQ utilizes a laddered portfolio of autocallable yield notes, focusing on delivering equity income [4] - The fund's autocallable yield notes are based on the MerQube Nasdaq-100 Vol Advantage Autocallable Index, with a barrier level of -30% and a 70% coupon barrier [5] - Monthly income is generated as long as the MerQube index remains above the -30% threshold; if it falls below, income payments cease until recovery [6] Performance and Fees - As of January 13, 2026, CAIQ has a weighted average coupon of 17.86% and a relatively low fee of 0.74% for each ETF [7] - Another fund in the Calamos lineup, the Calamos Autocallable Income ETF (CAIE), has surpassed $500 million in assets under management and focuses on the S&P 500 [8] Investment Appeal - Both CAIQ and CAIE offer transparent income generation and risk-managed principal, making them attractive options for investors navigating market volatility [9]

Core Insights - The Calamos Nasdaq Autocallable Income ETF (CAIQ) was launched on November 20, 2025, to provide investors with stable, higher, and predictable income amidst traditional yield challenges and equity market volatility [1][6]. Group 1: Product Overview - CAIQ aims to deliver high monthly income and potential long-term principal appreciation through a portfolio of autocallable yield notes linked to the performance of a stable-volatility Nasdaq-100-based index [2][6]. - The fund utilizes the MerQube Nasdaq-100 Vol Advantage Autocallable Index, which is designed for autocallable strategies, targeting an implied volatility of 35% and managing downside risk with defined barriers [3][4]. Group 2: Income Generation and Risk Management - CAIQ's autocallable notes provide regular income as long as the MerQube index does not fall below a predetermined barrier level of -30%, allowing for consistent yield even during flat or modestly declining market conditions [4][5]. - The fund employs a diversified approach with over 52 autocallables, creating a laddered structure that aims to smooth income generation and reduce timing risk [5][10]. Group 3: Market Position and Strategy - The launch of CAIQ builds on the success of the Calamos Autocallable Income ETF (CAIE), which has attracted significant inflows and generated substantial monthly yield since its launch on June 25, 2025 [6][7]. - CAIQ is positioned as a tax-efficient investment option, designed to provide distributions with favorable tax treatment compared to ordinary income [10].

Core Insights - The Calamos Autocallable Income ETF (CAIE) has experienced significant inflows since its launch on June 25, 2025, accumulating over $350 million in assets under management, indicating strong investor interest [1][2] - CAIE is designed to provide not only competitive monthly income but also capital appreciation opportunities, making it an attractive investment option in the current market [2][6] Fund Structure and Operation - CAIE generates yield by investing in a laddered selection of autocallable yield notes linked to the MerQube US Large-Cap Vol. Advantage Index, with a predetermined barrier level of -40% [3][4] - The fund's autocallables can continue to generate income as long as the index does not fall below the barrier, allowing for income generation even during market volatility [5] Performance Metrics - As of September 30, 2025, CAIE's distribution rate was reported at 14.36%, showcasing its strong income-generating capability [4] - The fund's net asset value (NAV) increased by 9.99% over the last three months, highlighting its potential for capital appreciation alongside income generation [6]

Economic Landscape - The current U.S. economy is facing significant stressors, including concerns over government shutdowns, new tariff threats, and persistent inflation, which are impacting the long-term outlook [1] - Despite these challenges, there are positive indicators, particularly among large-cap companies in the S&P 500, especially in the tech sector, which are reporting strong quarterly results [2] Federal Reserve Actions - The Federal Reserve has recently trimmed interest rates and plans to continue cutting rates in the future, which may create favorable conditions for businesses and encourage market participation [3] Investment Opportunities - The Calamos Autocallable Income ETF (CAIE) is designed to balance opportunity and risk by investing in a laddered portfolio of autocallable yield notes, aiming for high income and long-term principal [4] - CAIE utilizes the MerQube US Large-Cap Vol Advantage Index as its reference index, allowing it to generate income based on U.S. large-cap market performance while maintaining a protective barrier level of -40% [5] Performance Metrics - As of September 30, 2025, CAIE has achieved a distribution rate of 14.36%, demonstrating its ability to generate compelling monthly yield through its autocallable structure [6]

Group 1: Calamos Investments and Autocallable ETFs - The Calamos Autocallable Income ETF (CAIE) is the first auto callable ETF launched in June and has quickly gained popularity, surpassing $300 million in assets under management within a few months [2][4] - CAIE is structured similarly to bonds but linked to equity indices, providing monthly income and returning principal if the underlying equity does not fall below a predefined barrier, with coupon rates recently exceeding 14% [2][4] - The ETF offers more stable payouts and tax advantages compared to traditional covered call and equity premium income ETFs, making it an attractive option for advisors as a replacement for equities or high-yield bonds [4] Group 2: Franklin Templeton's ETF Growth - Franklin Templeton has surpassed $50 billion in global ETF assets, driven by a diverse lineup of smart beta, index, and active strategies, particularly in active ETFs and single-country funds [6][7] - Strong inflows have been noted in flagship funds such as the Franklin International Low Volatility High Dividend ETF (LVHI) and the Putnam Focus Large Cap Value ETF (PVAL), attributed to regulatory changes and investor demand for proven active strategies [7] - Cautionary insights were shared regarding the newly approved ETF share class structure, suggesting its impact may be limited compared to the growth momentum of active ETFs [7]

Core Insights - The Calamos Autocallable Income ETF (CAIE) has achieved over $300 million in assets under management (AUM) within four months of its launch on June 25, 2025, indicating strong investor interest in its unique strategy [1] Investment Strategy - CAIE focuses on autocallables, which are yield notes linked to a specific index that pay coupons and return principal based on the index's performance [2] - The fund provides access to a diversified portfolio of at least 52 autocallables, often holding more, through the flexibility of the ETF structure [2] Performance Metrics - The reference index for CAIE is the MerQube U.S. Large-Cap Vol. Advantage Index, which must not fall below a coupon barrier of -40% for the autocallables to generate monthly income [3] - Investors will receive their principal back if the notes are called, ensuring a level of protection [3] Portfolio Applications - CAIE can serve as an equity alternative, aiming to generate total returns while providing income [4] - The fund is also positioned as a substitute for fixed income, offering monthly distributions that compete with high-yield bond ETFs [5] - The diverse applications of CAIE suggest continued momentum and interest from advisors and investors [6]