Calamos Nasdaq-100 Str Alt Prt ETF-Jun Stock Price, News & Analysis

Calamos Nasdaq-100 Structured Alt Protection ETF – June (ticker CPNJ) is an exchange-traded fund in the Calamos Structured Protection ETF suite. According to Calamos Investments, CPNJ is designed to provide exposure to the price return of the Invesco QQQ Trust, Series 1, which is based on the Nasdaq-100 Index, with a specified level of downside protection and an upside cap over a defined outcome period of approximately one year.

Fund objective and structure

The fund is described as a Structured Alt Protection ETF. Calamos states that CPNJ is designed to offer 100% downside protection against negative returns of its reference asset over a one-year outcome period if shares are bought at the start and held through the end of that period, before fees and expenses. In exchange for this protection, the fund has a cap on the maximum percentage return an investor can achieve over the outcome period, also before fees and expenses.

CPNJ seeks point-to-point exposure to the price return of its reference asset via a basket of FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation. Because of this options-based structure, the ETF is not expected to move directly in line with the reference asset during the interim period of an outcome period.

Outcome periods, caps, and protection

Calamos explains that Structured Protection ETFs, including CPNJ, operate in one-year outcome periods. The initial outcome period begins on the fund’s inception date, and each subsequent outcome period begins on the first day of the same month in later years. For the outcome period from June 2, 2025 to May 29, 2026, Calamos announced an upside cap rate of 7.65% for CPNJ, before fees and expenses. The fund is described as providing 100% downside protection over that outcome period if shares are held for the entire period, again before fees and expenses.

The cap represents the maximum percentage return an investor can achieve from an investment in the fund if held over the outcome period. Calamos notes that caps may rise or fall from one outcome period to the next based on market conditions, and that the fund’s position relative to the cap at any given time is an important consideration for investors.

Reference asset and benchmark

For CPNJ, the reference asset is the price return of the Invesco QQQ Trust, Series 1, which is based on the Nasdaq-100 Index. The fund uses the Nasdaq-100 Index (price return) as a benchmark. Calamos also references the MerQube Capital Protected US Large Cap Tech Index – June in connection with CPNJ.

Role within the Calamos Structured Protection ETF suite

CPNJ is part of a broader lineup of Calamos Structured Protection ETFs, which also includes funds linked to the S&P 500 Index and the Russell 2000 Index. Calamos highlights that this suite combines its experience in alternatives, risk management, and options-based strategies with the ETF structure. The firm has outlined a schedule of multiple Structured Protection ETFs across different months and reference indexes, with CPNJ representing the Nasdaq-100 Structured Alt Protection ETF for the June series.

Tax and trading considerations

Calamos notes that gains in an ETF can grow tax-deferred and may be taxed at long-term capital gain rates if shares are held longer than one year, and that shares of the fund are bought and sold at market price, not net asset value. Shares are not individually redeemable from the fund. The firm explains that investors who purchase shares after an outcome period has begun may experience results that differ from the fund’s stated objective for that outcome period, and that the outcomes the fund seeks to provide are designed for investors who hold shares from the first day through the last day of the outcome period.

Risk considerations

According to Calamos, an investment in CPNJ is subject to risks, and loss of principal is possible. The firm emphasizes that there can be no assurance the fund will achieve its investment objective or successfully provide the sought-after protection. It notes that the fund faces numerous risks, including capital protection risk, capped upside risk, options risk, derivatives risk, equity securities risk, liquidity risk, market risk, non-diversification risk, premium-discount risk, secondary market trading risk, sector risk, tax risk, underlying ETF risk, valuation risk, and risks related to FLEX Options and the Options Clearing Corporation.

Calamos also explains that 100% capital protection is described over a one-year period before fees and expenses, and that all caps are predetermined. The firm stresses that if the outcome period has begun and the underlying ETF has increased in value, appreciation since the start of the outcome period is not protected, and an investor could experience losses until the underlying ETF returns to its original price at the commencement of the outcome period.

Issuer background

CPNJ is sponsored by Calamos Investments LLC, which describes itself as a diversified global investment firm offering strategies across alternatives, multi-asset, convertible, fixed income, private credit, equity, and sustainable equity. Calamos offers these strategies through vehicles such as ETFs, mutual funds, closed-end funds, interval funds, UCITS funds, and separately managed portfolios, serving clients that include financial advisors, wealth management platforms, pension funds, foundations, endowments, and individuals in multiple regions.

Key features summarized

• Structured Alt Protection ETF linked to the price return of Invesco QQQ Trust, Series 1, based on the Nasdaq-100 Index.
• Designed to offer 100% downside protection over a one-year outcome period if held for the full period, before fees and expenses.
• Subject to an upside return cap for each outcome period, such as a 7.65% cap for the June 2, 2025 to May 29, 2026 outcome period, before fees and expenses.
• Implements its strategy using FLEX Options, which may not track the reference asset directly during the outcome period.
• Part of the Calamos Structured Protection ETF suite, which includes multiple funds across different indexes and calendar months.

For complete details about objectives, risks, charges, and expenses, Calamos directs investors to the fund’s prospectus and summary prospectus.