Calamos Alternative Nasdaq & Bond ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The management team's considerable industry experience drives a High People Pillar rating for the strategy. The fund's assessment garners an Average Process Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

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Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, clearly defined, repeatable execution. Calamos Alternative Nasdaq & Bond ETF earns an Average Process Pillar rating. The leading factor in the rating is the firm's five-year retention rate of 94% over the period. The parent firm's five-year risk-adjusted success ratio of 53% also influences the rating. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Their compelling success ratio suggests that the firm does well for investors and that this fund may benefit from that. Lastly, the process is limited by high costs across its parent firm's funds, whose fees rank in their category's second-costliest quintile on average. While this fund's costs are most relevant to investors, the pattern at the broader firm suggests it could do more to keep fees down.

The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks attractive risk-adjusted total return through capital appreciation and current income.  The fund pursues its objective by investing, under normal circumstances, at least 80%, but up to 100%, of its net assets (plus borrowings for investment purposes, and if any) in a portfolio of equity instruments (including options and equity ETFs) and fixed income instruments (including bonds and fixed income ETFs) intended to deliver convertible security-like exposure to companies in the Nasdaq-100 Index. The fund is non-diversified. 

 

 The fund’s bond sleeve takes on more credit risk but remains less exposed to interest rate risk relative to peers. More explicitly, the portfolio exhibits a lower average credit rating of BB in contrast to the category average’s BBB but has a shorter average duration of 4.4 years to the average’s 5.1 years.

Average

Process

Calamos Alternative Nasdaq & Bond ETF earns a High People Pillar rating. The main contributor to the rating is the firm's five-year retention rate of 94%. The parent firm's five-year success ratio of 56% also supports the rating. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. Their impressive success ratio suggests that the firm does well for investors and that this fund may benefit from that. The combined average five-year excess return of each manager contributes to the rating further. It indicates that the funds they manage have outperformed their respective category's average return.


R. Matthew Freund, the longest-tenured manager on the strategy, boasts over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.9 stars, reflecting average risk-adjusted performance versus category peers. Despite having a small team, the two listed managers boast 17 years of listed portfolio management experience. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

High

People

Calamos continues to expand its executive leadership and offerings. Still, it has not outgrown its Average Parent rating as these new additions require time to settle and as success remains concentrated in certain mandates.
John Calamos Sr. founded his namesake firm in 1977, and it quickly gained a reputation for convertible bond expertise. The firm was temporarily publicly traded, but after about 12 years, it pivoted back to private ownership in January 2017, within a year of John Koudounis taking over as CEO. Since then, Calamos gained a new CFO and head of fixed income (both in 2016), COO and head of product (both in 2021), chief marketing officer (2022), and head of ETFs (2023). While leadership and succession planning have solidified since Koudounis took over (and so have the senior investment personnel as the firm’s long-term incentive program evolved), broader stability requires time to crystallize.
As of mid-2023, the firm’s long-established liquid alternatives offerings still drove the greatest proportion of flows and held the bulk of assets—Market Neutral Income (a core substrategy of which is convertible arbitrage) accounts for nearly 40% of the firm’s USD 35.6 billion in assets. New ventures—such as the launch of sustainable equities strategies and a partnership with Aksia on a closed-end private credit interval fund—are reasonable pursuits, but still very fresh.

Parent

Calamos Alternative Nasdaq & Bond Etf

CANQ is actively managed to provide convertible security-like exposure to the NASDAQ-100 Index. The portfolio contains a mix of equity options and fixed income exposure to pursue favorable risk-adjusted returns.

In light of recent economic indicators pointing to interest rate cuts deferred until later this year, now may be an opportune time for investors to fine-tune their portfolios. In the April 2024 Calamos Investment Team Outlooks, John P.

Curate a Balanced Portfolio With CANQ

The Nasdaq-100® has performed well in recent days, reaching a new all-time high last month.

Gain Exposure to Nasdaq Stocks Without All the Risk

Today's market landscape calls for a unique approach, such as pairing the upside potential of equities offset by the stability and income provided by bonds. The rate environment has shifted nearly overnight, fundamentally altering the investment environment we've grown accustomed to.

Today's Rate Regime Supports a Fixed Income Foundation

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The week ending in February 15 featured the Exchange conference in Miami, Florida, and launches were muted as a result. Only one new ETF made its debut during the week.

This Week in ETFs: 1 New ETF & a Raft of Closures

On Thursday, Calamos Investments LLC (“Calamos”), a global investment manager, announced the launch of the Calamos Alternative Nasdaq & Bond ETF (Nasdaq: CANQ). The actively managed ETF combines options-based exposure across leading Nasdaq-100 stocks coupled with diversified fixed income holdings.

Calamos Continues ETF Expansion With CANQ Launch

CANQ offers uncapped upside to the largest and most recognized Nasdaq-100 stocks, coupled with the income and diversification potential of bonds. New active ETF delivers Calamos' decades-long options and risk management expertise in a compelling, tax-efficient ETF structure.

Calamos Continues ETF Expansion with the Launch of the Calamos Alternative Nasdaq & Bond ETF (Ticker: CANQ)

News for Calamos Alternative Nasdaq & Bond Etf ETF (CANQ)