CAGE ETF: Calamos Brings Autocallable Growth to ETFs

Inside CAGE: A New Take on Structured Growth

CAGE is built around a laddered portfolio of at least 52 synthetic autocallable growth notes tied to large-cap U.S. equities. These instruments are designed to generate equity-linked returns with structured features that can enhance compounding over time.

The laddered approach, where notes are staggered weekly, helps reduce timing risk and creates a more consistent exposure profile. Instead of distributing income, coupons generated by the underlying notes are automatically reinvested, allowing returns to compound within the ETF in a tax-deferred manner.

One of the strategy’s most distinctive features is “coupon memory.” During market drawdowns, coupons are not lost. In CAGE, those coupons are effectively stored and paid when markets recover, reinforcing the long-term compounding effect.

As Matt Kaufman, Head of ETFs at Calamos, explains:

“Many know autocallables as a powerful vehicle for high income, but they can be a tremendous engine for growth, too. With CAGE, we’ve introduced coupon ‘memory’ whereby coupons are not lost in down markets, but stored and paid in full when markets recover.”

The ETF tracks a laddered autocallable index provided by MerQube, with J.P. Morgan serving as the primary swap counterparty.

Why CAGE Could Reshape Portfolio Construction

For investors, CAGE introduces a new way to think about growth allocation. Rather than relying solely on traditional equities, the ETF blends structured note mechanics with equity-linked exposure to create a differentiated return profile.

The strategy is designed for wealth accumulation, targeting long-term capital appreciation through compounding rather than income distribution. Its structure may allow investors to enhance the efficiency of their growth allocations—either by improving return potential within an equity sleeve or by reducing the need for higher equity exposure altogether.

Importantly, CAGE also simplifies access to a historically complex market. By delivering a portfolio of laddered autocallables in a single ETF, it removes the operational burden of sourcing, structuring, and managing individual notes.

Kaufman highlights this flexibility:

“Adding CAGE to a portfolio has the potential to make growth sleeves more efficient, and could enable lower equity allocations overall… or amplify growth exposure in a buy-and-hold framework.”

For a market that has traditionally required customization and scale, the ETF wrapper represents a meaningful shift—bringing transparency, liquidity, and accessibility to a strategy previously out of reach for many investors.

About Calamos

Calamos is a global investment firm known for its expertise in alternatives and risk-managed strategies. With more than $47 billion in assets under management, including a significant footprint in liquid alternatives, the firm has built a reputation for innovation across asset classes—from convertibles and structured strategies to private credit and equities.

The launch of CAGE reflects Calamos’ broader push to bring institutional-grade strategies into the ETF format. By combining structured note expertise with scalable ETF design, the firm continues to expand the toolkit available to investors seeking differentiated sources of return.

Read the full CAGE ETF press release here, and find Calamos' Autocallable ETF Strategy here.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.