New Stock ETFs Offering ‘100%’ Downside Protection Are Coming - BNN Bloomberg

CPSM will primarily invest its assets in derivatives by buying and selling a combination of call and put options to cushion against market volatility.

(Bloomberg) -- It sounds like a surefire, slam-dunk trade for stock investors playing defense: ETFs that will bet on equity markets without — the pitch says — going down.

Calamos Investments filed Monday for so-called “structured-protection” exchange-traded funds that will track a portion of the returns of the S&P 500, Nasdaq 100 and Russell 2000 while hedging 100% of the downside via the options market, according to a Monday filing.

The first fund launching within the suite is the Calamos S&P 500 Structured Alt Protection ETF, which aims to match the price return of the SPDR S&P 500 ETF Trust (ticker SPY) up to a cap of 9.65%.

The catch: Investors looking to reap the full protection will need to buy it on launch day — May 1, 2024 — and hold it, come rain or shine, through April 30, 2025. After that, a new defined period of cover kicks in.

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