Calamos launched the Calamos Active Hedged Equity ETF (BATS:CHDG), an actively managed hedged equity ETF that uses FLEX options on the State Street SPDR Portfolio S&P 500 ETF (NYSE:SPYM) to target equity-like returns with lower volatility.
Unlike systematic hedged equity ETFs that rebalance on fixed schedules, CHDG continuously adjusts its options positioning based on market conditions. The ETF carries a 0.66% total expense ratio (0.64% management fee).
Calamos said the strategy builds on the firm’s institutional options platform, with the portfolio management team overseeing more than $25 billion in assets and bringing over 120 years of combined options and risk-management experience. The ETF also extends the firm’s hedged equity mutual fund strategy, which has been managed since 2014.
QUICK CONTEXT: Active Hedged ETFs Gain Momentum
Hedged equity ETFs are popular as investors seek downside protection without abandoning equity exposure. Rather than simply tracking an index, these funds combine stock portfolios with options strategies designed to cushion market declines while allowing participation in rallies.
CHDG enters a competitive landscape that includes both systematic buffered ETFs and actively managed hedged products. Its key differentiator is the ability to adjust hedge levels continuously instead of relying on preset quarterly option rolls, which Calamos argues can leave investors with inconsistent market exposure during periods of heightened volatility.
The launch also expands Calamos’ ETF lineup as asset managers increasingly package established mutual fund strategies into ETFs, offering investors potential tax efficiency, intraday liquidity and lower trading costs.
Active ETFs have been one of the industry’s strongest growth segments in recent years, with options-based income and risk-managed strategies attracting particularly strong investor interest.
Photo: Shutterstock
Login to comment