How to Safely Stick With the S&P 500

Those hoping that 2026 would bring calmer markets than 2025 likely hit a bit of a rude awakening in March.

Following geopolitical escalation in the Middle East, the Strait of Hormuz closed down, effectively limiting the ability for oil tankers to travel through the critical region. This has led to oil prices routinely passing the $100 a barrel marker, while the average price of gas has hit $4 in the United States.

These price problems aren’t just limited to drivers and energy investors. With oil prices mounting, confidence in the Federal Reserve’s ability to tame inflation continues to shake. Both the Dow and S&P 500 have struggled to keep up, recently dropping for five weeks in a row, which represents the worst weekly loss streak for both in nearly four years.

Uncertainty and potential volatility are likely not going away any time soon. Instead of trying to plan around the unpredictable, investors should consider opting to pivot some of their equity exposure towards a defensive approach.

Navigate Market Uncertainty With a Laddered Defensive Equity Approach

One approach that could make sense in today’s environment is the Calamos Laddered S&P 500 Structured Alt Protection ETF (CPSL). CPSL provides risk-adverse S&P exposure through a laddered portfolio of Calamos Structured Protection ETFs.

The crux of CPSL’s strategy focuses on investing in all 12 monthly Calamos S&P 500 Structured Alt Protection ETFs. Each one of these underlying ETFs uses a disciplined options approach in order to provide S&P 500 exposure paired with complete downside protection across a one-year outcome period, sans fees and expenses. This downside protection does come at the expense of an upside cap on potential returns, however.

CPSL’s approach accomplishes a few potential advantages within its one ticker. First, the fund lets investors stay engaged with the S&P 500, while providing a significant source of risk management in case of a drawdown. Furthermore, the laddered portfolio gives access to 12 distinct outcome periods. That provides investors with different time horizons and potential return opportunities.

Putting this together, CPSL’s take on de-risked S&P 500 exposure could be very well-positioned for navigating the current macroeconomic environment. Regardless of whether markets move upward or downward, CPSL can help investors be ready.

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Disclosures

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(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) 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(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.   

Investing involves risks. Loss of principal is possible. The Fund(s) face numerous market trading risks, including authorized participation concentration risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, clearing member default risk, correlation risk, derivatives risk, equity securities risk, investment timing risk, largecapitalization investing risk, liquidity risk, market maker risk, market risk, non-diversification risk, options risk, premiumdiscount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, underlying ETF risk and valuation risk. For a detailed list of fund risks see the prospectus.   

FUND-OF-FUNDS RISK. Shareholders of the Fund will experience investment returns that are different than the investment returns provided by an Underlying ETF. The Fund does not itself pursue a defined outcome strategy, nor does the Fund itself provide downside protection against SPY losses. Because the Fund will typically not purchase an Underlying ETF on the first day of a Target Outcome Period, it is not likely that the stated outcome of the Underlying ETF will be realized by the Fund. The Fund will be continuously exposed to the investment profiles of each of the Underlying ETFs during their respective Target Outcome Periods. The Fund, with its aggregate exposure to each of the Underlying ETFs, may have investment returns that are inferior to that of any single Underlying ETF or group of Underlying ETFs over any given time period. In between the semi-annual rebalance period of the Index, because the Fund is not equally weighted on a continuous basis, the Fund may be exposed to one or more Underlying ETFs disproportionately when compared to other Underlying ETFs. In such circumstances, the Fund will be subject to the over-weighted performance of such Underlying ETF.  

As a shareholder in other ETFs, the Fund bears its proportionate share of each ETF’s expenses, subjecting Fund shareholders to duplicative expenses.   

There are no assurances the Underlying ETFs will be successful in providing the sought-after protection. The outcomes that the Underlying ETFs seek to provide may only be realized if you are holding shares on the first day of the outcome period and continue to hold them on the last day of the outcome period, approximately one year. There is no guarantee that the outcomes for an outcome period will be realized or that the Underlying ETFs will achieve its investment objective. If the outcome period has begun and the underlying ETF has increased in value, any appreciation of the Fund(s) by virtue of increases in the underlying ETF since the commencement of the outcome period will not be protected by the sought-after protection, and an investor could experience losses until the underlying ETF returns to the original price at the commencement of the outcome period. The Underlying ETFs are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the fund(s) for the outcome period, before fees and expenses. If the outcome period has begun and the Underlying ETFs have increased in value to a level near to their individual Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one outcome period to the next. Unlike the Underlying ETFs, the Fund itself does not pursue a target outcome strategy. The protection is only provided by the Underlying ETFs and the Fund itself does not provide any stated downside protection against losses. The Fund will likely not receive the full benefit of the Underlying ETF downside protections and could have limited upside potential. The Fund’s returns are limited by the caps of the Underlying ETFs.   

Cap Rate – Maximum percentage return an investor can achieve from an investment in the Fund if held over the Outcome Period. Protection Level –Amount of protection the Fund is designed to achieve over the Days Remaining.  

Outcome Period – The defined length of time over which the outcomes are sought.   

The S&P 500 Price Index (SPX) tracks the price return of the S&P 500 Index, which is generally considered representative of the US stock market.   

Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.  

The “S&P 500” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and S&P Global, and has been licensed for use by Calamos Advisors LLC (“CAL”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by CAL. Calamos S&P 500 Structured Protection ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or S&P Global. Neither S&P Dow Jones Indices nor S&P Global make any representation or warranty, express or implied, to the owners of the Calamos S&P 500 Structured Protection ETFs or any member of the public regarding the advisability of investing in securities generally or in Calamos S&P 500 Structured Protection ETFs particularly or the ability of the S&P 500 to track general market performance. S&P Dow Jones Indices and S&P Global only relationship to CAL with respect to the S&P 500 is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 is determined, composed and calculated by S&P Dow Jones Indices or S&P Global without regard to CAL or the Calamos S&P 500 Structured Protection ETFs. S&P Dow Jones Indices and S&P Global have no obligation to take the needs of CAL or the owners of Calamos S&P 500 Structured Protection ETFs into consideration in determining, composing or calculating the S&P 500. Neither S&P Dow Jones Indices nor S&P Global are responsible for and have not participated in the determination of the prices, and amount of Calamos S&P 500 Structured Protection ETFs or the timing of the issuance or sale of Calamos S&P 500 Structured Protection ETFs or in the determination or calculation of the equation by which Calamos S&P 500 Structured Protection ETFs are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and S&P Global have no obligation or liability in connection with the administration, marketing or trading of Calamos S&P 500 Structured Protection ETFs. There is no assurance that investment products based on the S&P 500 will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.  

NEITHER S&P DOW JONES INDICES NOR [THIRD PARTY LICENSOR] GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE [INDEX] OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND [THIRD PARTY LICENSOR] MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY [LICENSEE], OWNERS OF THE [LICENSEE ETF], OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE [INDEX] OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR [THIRD PARTY LICENSOR] BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND [LICENSEE], OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.  

STRUCTURED ALT PROTECTION ETF and STRUCTURED PROTECTION ETF are trademarks of Calamos Investments LLC.  

Calamos Financial Services LLC, Distributor​    

Calamos Financial Services LLC   

2020 Calamos Court | Naperville, IL 60563   

866.363.9219 | www.calamos.com | [email protected]   

2026 Calamos Investments LLC. All Rights Reserved.   

Calamos and Calamos Investments are registered trademarks of Calamos LLC.

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