With traditional yield susceptible to rate cuts and equities volatile, many investors seek alternative sources for stable, higher, predictable income. On November 20, 2025, Calamos Investments launched the Calamos Nasdaq Autocallable Income ETF (CAIQ) to address this need.
CAIQ aims to provide high monthly income, along with risk management and potential for long-term principal appreciation through a portfolio of autocallable yield notes that deliver income based on how a stable-volatility Nasdaq-100-based index performs.
How CAIQ Works
The MerQube Nasdaq-100 Vol Advantage Autocallable Index, a sophisticated index of laddered autocallable notes, is optimized specifically for autocallable strategies. It is designed to provide Nasdaq-100 exposure with an implied volatility target of 35%, capture coupon income with callable triggers, and manage downside risk through defined barriers.
CAIQ’s notes are constructed to provide income on a regular basis, as long as the MerQube index does not drop below the predetermined barrier level. Within the fund, each autocallable’s barrier level sits at -30%. Essentially, the fund can provide a constant yield, even if the Nasdaq-100 is flat or experiences modest declines. It should be noted that if an autocallable is called while the index is under the barrier level, investors could be subject to some loss of principal.
Built-In Risk Management
Beyond the barrier protection, CAIQ employs additional risk management through its structure. By offering diversified exposure to approximately 52+ autocallables with staggered entry points, the fund creates a laddered approach that aims to smooth income generation and reduce timing risk. In addition, the swap-based implementation offers operational efficiency and liquidity management benefits compared to direct ownership of autocallable notes. Finally, the ETF wrapper with its net expense ratio of 74 basis points provides operational efficiency and easier tax handling.
Established Autocallable Expertise
This launch builds on proven success. CAIQ follows the Calamos Autocallable Income ETF (CAIE), which has achieved strong results since its June 25, 2025, launch, gaining hundreds of millions in inflows as it continues to generate significant monthly yield. Like CAIE, CAIQ is designed to deliver monthly income, risk management through barriers, and the transparency of a listed fund, all in one product.
CAIE has demonstrated that structured-protection innovation can resonate with investors in the ETF ecosystem. As Calamos establishes itself in the autocallable space, CAIQ offers advisors another option for income-focused portfolios.
Why CAIQ Now?
- Seeks High, Stable Income – Monthly coupons typically exceed traditional fixed income, driven by Nasdaq-100 performance, not duration or credit risk.
- Tax-Efficient – Designed to deliver distributions with favorable tax treatment compared to ordinary income.
- Laddered Exposure – 52+ autocallables aim to provide consistent income, diversification and reduced timing risk.
- Model-Ready – Single-ticker, fully liquid, and operationally streamlined for easy implementation.
Where Does It Fit?
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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 is subject to risks, and you could lose money on your investment in the Fund. There can be no assurance that the Fund will achieve its investment objective. Your investment in the Fund 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 can increase during times of significant market volatility. The Fund also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
The principal risks of investing in the Calamos Autocallable Income ETF and the Calamos Nasdaq Autcallable Income ETF include: autocallable structure risk, contingent income risk, early redemption risk, barrier risk, authorized participant concentration risk, calculation methodology risk, cash holdings risk, correlation risk, costs of buying and selling fund shares, counterparty risk, credit risk, derivatives risk, equity securities risk, index risk, interest rate risk, investment in a subsidiary, laddered portfolio risk, liquidity risk, market maker risk, market risk, new fund risk, non-diversification risk, premium-discount risk, secondary market trading risk, swap agreement risk, tax risk, trading issues risk, valuation risk, and volatility target index risk.
Autocallable Structure Risk: The Fund’s returns are correlated to the performance of a synthetic portfolio of autocallable notes tracked by the Laddered Autocall Index. Autocallable notes have specific structural features that may be unfamiliar to many investors.
Contingent Income Risk: Coupon payments from the Autocalls are not guaranteed and will not be made if the Underlying Index falls below the Coupon Barrier on observation dates. This means the Fund may generate significantly less income than anticipated during market downturns.
Early Redemption Risk: Autocalls in the Portfolio may be called before their scheduled maturity if the Underlying Reference Index reaches or exceeds the Autocall Barrier on observation dates. This automatic early redemption could force reinvestment of that portion of the portfolio at lower rates if market yields have declined.
Barrier Risk: If the Underlying Reference Index falls below the Protection Level Barrier at the maturity of an Autocall in the Portfolio, that portion of the Portfolio will be fully exposed to the negative performance of the Underlying Reference Index from its initial level. This conditional protection creates a binary outcome that can result in sudden, significant losses if barriers are breached.
The MerQube Nasdaq-100 Vol Advantage Autocallable Index is designed to reflect the collective performance of a theoretical portfolio of 52 to 260 synthetic Autocallables arranged in a laddered structure with staggered entry points with similar fixed parameters (the “Parameters”) as described below within the section entitled “Autocallable Index Portfolio Characteristics”.
Nasdaq® is a registered trademark of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and is 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
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Calamos® and Calamos Investments® are registered trademarks of Calamos Investments LLC.
