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].

It's no understatement to point out that the Calamos Autocallable Income ETF (CAIE) has seen meteoric flows ever since the fund launched on June 25, 2025. CAIE has already accrued over $350 million in assets under management, a testament to its appeal. These flows aren't happening by chance. In today's environment, where advisors and investors are actively seeking alternative sources of income, CAIE stands out by offering a compelling and innovative solution. See More: Autocallable ETF CAIE Hits $300 Millio ...

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]

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 Mechan ...

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]

Core Insights - The demand for derivative income ETFs is expected to remain strong due to their ability to provide consistent income and access to equity indexes in a challenging macroeconomic environment [1][2] - The uncertain U.S. economic outlook, with potential recession or stagflation, enhances the value of downside protection offered by derivative income ETFs [2] - The Federal Reserve's anticipated rate cuts complicate fixed income portfolio management, making alternative income strategies like derivative income ETFs more appealing [3] Derivative Income ETFs - Derivative income ETFs are positioned as valuable tools for navigating economic uncertainty, providing both income and equity market exposure [1][2] - The Calamos Autocallable Income ETF (CAIE) is highlighted as a standout option, utilizing a strategy that involves laddering autocallable yield notes linked to equity market performance [4][7] CAIE Fund Details - CAIE's autocallables reference the MerQube US Large-Cap Vol. Advantage Index, maintaining yield as long as performance does not fall below a -40% barrier [5][6] - As of September 30, 2025, CAIE reported a competitive distribution rate of 14.36%, indicating strong yield opportunities [8]

Core Insights - The Calamos Autocallable Income ETF (CAIE) won the "Most Innovative Product" award at the 2025 SRP Americas Awards, marking the first time an ETF and asset manager received this recognition [1][7] - CAIE has achieved over $250 million in assets under management (AUM) within three months of its market launch, indicating strong investor interest [2] - The fund aims to generate monthly income through a portfolio of autocallable yield notes, which can provide returns even in declining equity markets [3][4] Fund Structure and Strategy - CAIE's portfolio consists of over 52 autocallables linked to the MerQube US Large-Cap Vol. Advantage Index, with a barrier level of -40% for monthly coupon payments [4] - The laddered structure of CAIE allows for diverse time horizons, potentially offering a smoother income path compared to individual autocallables [5] - As of September 18, 2025, CAIE has a weighted average coupon of 14.5%, enhancing its appeal as both an equity alternative and an income-generating investment [6] Industry Impact - The collaboration between Calamos and MerQube represents a significant advancement in ETF product innovation, with expectations that CAIE will set a standard for delivering autocallables in the marketplace [7] - The award reflects a shift in recognition towards innovative ETF products, traditionally dominated by structured products and banks [1][11]

Core Insights - Calamos is launching the U.S. Tech Autocallable Income ETF (CAIQ) in Q4 2025, following the success of its first autocallable ETF, CAIE, which has seen strong investor demand since its launch on June 25, 2025 [1][2] - The CAIE ETF has been recognized as the "Most Innovative Product" at the SRP Americas 2025 Awards, highlighting its unique structure that provides access to a portfolio of autocallables through a single ETF [2][4] - The innovative approach of Calamos aims to democratize access to sophisticated yield strategies, with CAIE offering high, stable, and tax-efficient income [4][12] Company Overview - Calamos is a diversified global investment firm based in the Chicago metropolitan area, managing over $45 billion in assets under management (AUM), including more than $20 billion in liquid alternatives as of September 15, 2025 [6] - The firm focuses on innovative investment strategies across various asset classes, including alternatives, multi-asset, and sustainable equity [6] Market Context - The U.S. structured products market, particularly autocallable notes, is significant, with nearly $200 billion in total market size and over $40 billion in net flows year-to-date [4][21] - Autocallable ETFs, led by Calamos' CAIE, are anticipated to be a major trend in the income category, offering double-digit yields and tax efficiency compared to traditional high-yield ETFs [3][22] Product Details - The CAIQ ETF will utilize a laddered QQQ-based autocallable index, optimized for high, stable income, with J.P. Morgan serving as the swap counterparty [4][14] - CAIE has delivered a recent distribution yield of 13.77%, with over 91% of its yield classified as return of capital, which is tax-deferred [3][22]

Core Insights - The Calamos Autocallable Income ETF (CAIE) has garnered significant interest from advisors and investors since its launch, surpassing $150 million in net assets by August 2025 and achieving over $100 million in net flows in just one month as of September 12, 2025 [2][3]. Investment Strategy - CAIE invests in a collection of autocallable yield notes, which provide coupon payments linked to market performance, contingent on not falling below a predetermined barrier level [4]. - The fund employs a laddered portfolio structure, consisting of 52 or more autocallables benchmarked to the MerQube US Large-Cap Vol. Advantage Index, making these investments more accessible [5]. Benefits of Laddered Portfolio - The laddered structure allows for automatic reinvestment of matured notes, reducing timing risk associated with reinvesting individual notes [6]. - The variety of maturity points within the laddered portfolio lowers tail risk, as some autocallables may continue to provide income even if others breach their barriers [7]. - A laddered portfolio offers a smoother income path, with multiple notes paying at different times, contrasting with the income variability of a single autocallable note [8]. Market Positioning - The combination of the laddered portfolio and the flexibility of the ETF wrapper positions CAIE as a versatile investment option, capable of generating income and principal from the equity market, particularly valuable in uncertain market conditions [9].

Core Viewpoint - The article discusses the potential need for investors to consider reallocating assets away from high-yield bonds due to emerging economic concerns and the introduction of alternative investment options like the Calamos Autocallable Income ETF (CAIE) that may offer better income and diversification opportunities [1][2][3]. Economic Environment - Recent job numbers have raised concerns about a slowing US economy, which could negatively impact high-yield bond investors as it may lead to difficulties for issuers in meeting coupon payments or increasing default risks [2]. - Ongoing inflationary pressures and political tensions complicate the Federal Reserve's ability to manage interest rates effectively, creating uncertainty for bond investors, particularly in the high-yield sector [3]. Investment Alternatives - Finding a suitable replacement for high-yield bonds is challenging, as these bonds provide significant diversification benefits compared to traditional investment-grade bonds [4]. - The Calamos Autocallable Income ETF (CAIE) is presented as an alternative that aims to generate high monthly income while enhancing diversification and reducing downside risk through a portfolio of autocallable notes linked to underlying assets [5][6]. Performance Comparison - CAIE has shown strong distribution results, with an estimated annualized distribution of 17.48%, significantly higher than the average 12-month annualized distribution rate of 8.12% for established high-yield bond funds [7]. - The fund's income is derived from equity market performance rather than the bond market, which may allow it to perform well even if the bond market faces challenges due to Federal Reserve uncertainties [8].