New Calamos ETF promises ‘100% downside protection.' Here's how it works

A new ETF designed to protect investors from market volatility has begun trading. The Calamos S&P 500 Structured Alt Protection ETF (CPSM) offers “100% downside protection” against the index’s losses over a one-year period. The ETF utilizes a combination of options positions to deliver the upside of the S&P 500 within a capped limit and guarantees capital protection. At the end of each year, the options reset and continue within the ETF. The fund carries an annual expense ratio of 0.69%.