Calamos Autocallables ETF (CAIE) | The Democratization Of Structured Notes Has Arrived

Calamos Autocallables ETF (CAIE) is a new entrant into the ETF market. It is an 'easy button' for retail investors to gain access to the structure note market and invest in a higher yielding strategy that has been around for some time. The yield on the ETF is about 14%, but carries a bit more risk than investing in a high yield closed-end fund but not much.

The autocallable market has been around for decades in derivative format and used mostly by larger institutions and some in the intermediary and advisory spaces. This is the first

The fund is managed by Calamos and the fee is actually quite reasonable at 74 bps. If you were to purchase a structured note on Schwab, you pay a $25 fee and 40 bps to the creator (the bank). If you use an intermediary to make the purchase, there would be another transaction charge in there or a percentage of the note (typically another 25 bps).