‘A lot of money on the sidelines’: Calamos Investments thinks ETFs should target CD, money market customers

There’s a potentially huge untapped market for exchange-traded funds (ETFs) worth trillions of dollars.

Matt Kaufman, head of ETFs at Calamos Investments, points out that there’s a large sum of money sitting idle in CD (certificate of deposit) and money market accounts.

He believes this market is ripe for ETFs to capture.

According to Kaufman, as interest rates remain elevated, structured and options ETFs can provide stability.

These ETFs are designed for risk management and income, which was challenging to achieve with low bond rates.

Kaufman emphasizes that ETFs offer several advantages in this higher-rate environment: * They can provide returns that outpace inflation, benefiting individuals, especially retirees.

* The funds offer exposure to the market with limited downside risk.

* They offer tax-deferred growth, further enhancing returns.

Calamos Investments has recently launched a suite of 12 structured protection ETFs to meet the growing demand for such products.

These ETFs provide investors with opportunities to protect their capital while potentially generating income and outperforming inflation.

The message is clear: ETFs have the potential to tap into this immense untapped market, offering investors a diverse range of options to manage risk, generate income, and achieve their financial goals in a higher-rate environment.