Posted by breakout on 24th of Apr 2024 at 10:08 am
Life Insurance folks been doing it for years......new ETFs
offering '100% downside protection' are getting ready to hit the
market, in the push to find the newest ETF fad. After all,
something has to replace all of the ESG ETFs that
have shuttered in the last year.Calamos Investments has introduced
new exchange-traded funds offering partial returns tracking the
S&P 500, Nasdaq 100, and Russell 2000, coupled with complete
downside protection through derivatives..The inaugural ETF, Calamos
S&P 500 Structured Alt Protection ETF, aims to mirror the SPDR
S&P 500 ETF Trust's price returns up to a
9.65% cap.Full protection requires purchasing the
ETF on its launch day, May 1, 2024, and maintaining the investment
until April 30, 2025. This ETF, and others soon to be launched,
will use call and put options to manage market volatility, though
their effectiveness in fully safeguarding against losses is not
guaranteed.
Posted by DigiNomad on 25th of Apr 2024 at 02:57 pm
This is the kind of things that FA's have to offer and what that
the new ETF's are trying to displace. Honestly, I don't think it
will be that hard for the ETF's to win out. Look at how long the
average lockup period is! Buffer ETF's can be liquidated with
a gain on day 2, if the market has gone up. Hard to compete with
that with this old school approach.
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Life Insurance folks been doing
Posted by breakout on 24th of Apr 2024 at 10:08 am
Life Insurance folks been doing it for years......new ETFs offering '100% downside protection' are getting ready to hit the market, in the push to find the newest ETF fad. After all, something has to replace all of the ESG ETFs that have shuttered in the last year.Calamos Investments has introduced new exchange-traded funds offering partial returns tracking the S&P 500, Nasdaq 100, and Russell 2000, coupled with complete downside protection through derivatives..The inaugural ETF, Calamos S&P 500 Structured Alt Protection ETF, aims to mirror the SPDR S&P 500 ETF Trust's price returns up to a 9.65% cap.Full protection requires purchasing the ETF on its launch day, May 1, 2024, and maintaining the investment until April 30, 2025. This ETF, and others soon to be launched, will use call and put options to manage market volatility, though their effectiveness in fully safeguarding against losses is not guaranteed.
This is the kind of
Posted by DigiNomad on 25th of Apr 2024 at 02:57 pm
This is the kind of things that FA's have to offer and what that the new ETF's are trying to displace. Honestly, I don't think it will be that hard for the ETF's to win out. Look at how long the average lockup period is! Buffer ETF's can be liquidated with a gain on day 2, if the market has gone up. Hard to compete with that with this old school approach.