When choosing one’s investments, many retirees approach the market with a bit of caution.This caution can be attributed to how many retirees operate with a more limited income. As such, retirees may feel the need to be choosier when it comes to adding market exposure.
However, there are a few particular perks of investing that can be especially attractive to retirees. For instance, ETFs that generate yield can help supplement a retiree’s regular income.
Another key benefit to consider is investment strategies with lower volatility. Given that many retirees invest with a limited budget, low-risk strategies can offer one more bang for their buck.CANQ Might Offer the Best of Both Worlds: Consistent Income & Risk MitigationRetirees may wish to look to ETFs that can simultaneously offer income and risk mitigation in the name of cash efficiency. One fund that may very well be able to do the trick is the Calamos Alternative Nasdaq & Bond ETF (CANQ C+).
CANQ offers an interesting mixed blend of equity and fixed income exposure, all within a single ticker. The fund is piloted by Calamos Investments, a firm with extensive expertise in managing alternative strategies.
To generate strong monthly income, CANQ offers a sizable fixed income overlay. This exposure is partly done through investing in a mix of different fixed income ETFs.
The fixed income portion of the fund is paired with equity exposure to the Nasdaq-100. To do so, the fund invests in FLEX Options on the Nasdaq-100. Additionally, CANQ may also opt to actively gain exposure to some individual companies within the index.
Lower volatility for the fund is achieved through a few different means. For starters, the diversification of CANQ’s bond foundation allows the fund to still perform during equity downturns. Additionally, the inherent versatility of FLEX Options could help the fund lock in better returns during turbulent times.
As the fund marks its first anniversary, CANQ’s multifaceted strategy has delivered results on multiple fronts. As of January 31, 2025, the fund had a distribution yield of 7.10%.* CANQ’s yield alone helps it compete against various fixed-income options in the market.
This yield comes with the added benefit of long-term capital appreciation. As of January 31, 2025, CANQ’s NAV rose 12.98% for the six-month period, outperforming the Nasdaq-100 Total Return Index, which was only up 11.35% over the same time period.
Finally, ETFs like CANQ may offer several tax advantages for retirees, including fewer taxable events, control over taxable events, lower turnover compared to other investments, and easier tax-loss harvesting.
For more news, information, and analysis, visit the Alternatives Channel.Disclosure InformationFor periods ended December 31, 2024, the Fund returned 5.93% NAV and 6.01% Market Price for the 3-month period, 10.33% NAV and 10.22% Market Price for the 6-month period, 18.32% NAV and 18.11% Market Price since inception (2/13/24). The Nasdaq-100 Total Return Index returned 4.93%, 7.16% and 18.36% for the 3-month, 6-month and since inception periods, respectively.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value of an investment will fluctuate so that your shares, when sold, may be worth more or less than their original cost. Returns at NAV reflect the deduction of the Fund’s management fee and other expenses, which can be found on the fund fees and expenses tab. You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment.
Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.
An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
*Distribution yield is calculated by annualizing the Fund’s most recent distribution paid and dividing by the Fund’s NAV as of the date of the period presented. Distributions may include interest and/or dividend income that represents the income accrued by the Fund during the period and are not guaranteed. Distribution Yield is based on distributions made in the past and therefore may not be reflective of the Fund’s current portfolio. 30-day SEC yield reflects the dividends and interest earned by the Fund during the 30-day period ended as of the date stated above after deducting the Fund’s expenses for that same period. The Fund had a 30-day SEC yield of 5.14% as of 1/31/25.
Risks of investing in the Calamos Alternative Nasdaq & Bond ETF include risks associated with: Authorized Participant Concentration Risk — Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund, and none of those Authorized Participants is obligated to engage in creation and/or redemption transactions; Debt Securities Risk — Debt securities are subject to various risks, including interest rate risk, credit risk and default risk; Equity Securities Risk — The securities markets are volatile, and the market prices of the Fund’s securities may decline generally; FLEX Options Risk — The Fund may invest in FLEX Options issued and guaranteed for settlement by The Options Clearing Corporation (“OCC”). FLEX Options are customized option contracts that trade on an exchange but provide investors with the ability to customize key contract terms like strike price, style and expiration date while achieving price discovery in competitive, transparent auctions markets and avoiding the counterparty exposure of over-the-counter options positions; High Yield Risk — High yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) are subject to greater levels of credit and liquidity risks; LEAPS Options Risk — The Fund’s investments in options contracts may include long-term equity anticipation securities known as LEAPS Options. LEAPS Options are long-term exchange-traded call options that allow holders the opportunity to participate in the underlying securities’ appreciation in excess of a specified strike price without receiving payments equivalent to any cash dividends declared on the underlying securities; Liquidity Risk – FLEX Options — In the event that trading in the underlying FLEX Options is limited or absent, the value of the Fund’s FLEX Options may decrease; Liquidity Risk – LEAPS Options — In the event that trading in the underlying LEAPS Options is limited or absent, the value of the Fund’s LEAPS Options may decrease; Market Maker Risk — If the Fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of Fund Shares; Market Risk—The risk that the securities markets will increase or decrease in value is considered market risk and applies to any security; New Fund Risk — The Fund is a recently organized investment company with a limited operating history; Non-Diversification Risk — The Fund is classified as “non-diversified” under the 1940 Act; Options Risk—The Fund’s ability to close out its position as a purchaser or seller of an over-the-counter or exchange-listed put or call option is dependent, in part, upon the liquidity of the option market; Other Investment Companies (including ETFs) Risk — The Fund may invest in the securities of other investment companies to the extent that such investments are consistent with the Fund’s investment objective and the policies are permissible under the 1940 Act.
Nasdaq® and Nasdaq-100, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Calamos Advisors LLC. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund(s).
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
Calamos Financial Services LLC
2020 Calamos Court | Naperville, IL 60563
866.363.9219 | www.calamos.com | caminfo@calamos.com
2024 Calamos Investments LLC. All Rights Reserved.
Calamos and Calamos Investments are registered trademarks of Calamos LLC.
Line of Credit 