Matt Kaufman, Global Head of ETFs at Calamos, breaks down the firm’s new Calamos Autocallable Growth ETF, CAGE, and the role it could play for investors looking to compound assets over time rather than generate current income. He frames the strategy as an extension of the firm’s autocallable lineup, using a laddered index of growth notes with annual observations and a “memory” feature that stores missed coupons for later, giving investors another way to pursue compounded growth over time.
Kaufman also walks through the mechanics advisors need to understand, including the fund’s 50% maturity barrier, weekly laddering, and the “pull to par” effect he says can help distinguish the strategy from a traditional equity allocation. While he notes that the ETF’s NAV can be volatile, he positions CAGE as a buy-and-hold vehicle for clients with at least a five-year horizon and contrasts it with leveraged ETFs that are built for a very different use case.
Resources: For more information about CAGE visit: www.calamos.com/CAGE.
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