Calamos added on April 1 two new faces to its expanding roster of Structured Protection ETFs: the Calamos S&P 500 Structured Alt Protection ETF – April CPSP and the Calamos Russell 2000 Structured Alt Protection ETF – April CPRA. These new launches come on the heels of two other funds launched in March, focusing on the Nasdaq-100 and S&P 500.

So why should these ETFs be considered on the radar screen? It’s all about a combination of exposure to the markets and a safety net against a loss.

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Let’s Break It Down

All four of the new ETFs — CPSP, CPRA and their March siblings Calamos S&P 500 Structured Alt Protection ETF – March CPSR and Calamos Nasdaq-100 Structured Alt Protection ETF – March CPNM — adhere to the Calamos Structured Protection strategy. They employ FLEX Options to reflect index performance but provide 100% downside protection for a one-year outcome period. (Just remember: this protection is pre-fees and expenses.)

On the flip side, that protection comes with a catch — a cap on potential upside. So, while you're shielded from major losses, your gains are also limited. It's the classic trade-off: less risk, but also less reward.

Each ETF resets at the end of its one-year term, swapping in new FLEX Options and setting fresh upside caps. It's a strategy that aims to be nimble while managing market noise.

Customized For Today’s Market Jitters

With big-cap stocks experiencing volatility and macro uncertainty, CPSP’s exposure to the S&P 500 might be a good hedge for risk-averse investors. It provides a means to remain connected to blue chips without shouldering the full impact of a decline.

In the meantime, CPRA is looking to the small-cap universe — the Russell 2000 — that is becoming increasingly popular as investors search for cheaper growth plays. CPRA fills the gap to provide small-cap exposure with a buffer against the usual volatility these stocks are associated with.

Earlier March launches — CPSR and CPNM — follow a similar strategy. CPSR rides S&P 500 momentum through the use of FLEX Options correlated to SPY, while CPNM offers investors a hedged entry into the Nasdaq-100 via QQQ.

Calamos isn’t unfamiliar with this play. With these additions, the company now has 20 Structured Protection ETFs under its belt, with a combined total of over $500 million in assets. And based on the way the market’s been acting lately, the demand for risk-managed approaches isn’t dissipating anytime soon.

So whether you want to tiptoe into small-caps, expose your portfolio to the S&P, or dabble in tech via the Nasdaq — Calamos is providing a structured means to do it, one capped gain at a time.

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