On the latest episode of the ETF Central Podcast, Bilal Little, Director of Exchange Traded Funds at the NYSE, sits down with Calamos SVP & Head of ETFs Matt Kaufman to unpack Calamos’ bold ETF strategy, its disruptive new products, and why innovation with risk control is the future of investing.

“You just need the ETF wrapper.”

That was Matt Kaufman’s realization when he first stepped into Calamos Investments, a $40 billion asset manager best known for pioneering convertible bond strategies since the 1970s.

From Insurance to Innovation

Kaufman brings over two decades of experience in structured solutions and derivatives, with stops at Milliman and PowerShares. His mission at Calamos is clear: bring the firm’s legacy of risk-managed investing into the ETF era.

“Financial services is not like athletics,” Kaufman said. “Your brain keeps getting sharper. And innovation in our space comes from combining what’s worked for decades with what’s possible now.”

Building for the Next Wave of Investors

Calamos isn’t trying to be just another active ETF issuer. Since launching its ETF suite, the firm has focused on solving tangible investor problems, especially for retirees and conservative investors. That includes capital-protected strategies and innovative income solutions like auto-callable ETFs.

“We’re seeing massive demand for outcome-based investing,” Kaufman said. “Today’s retirees are facing inflation, longevity risk, and limited tolerance for volatility. Our job is to provide precision tools for those problems.”

Introducing the World’s First Auto-Callable Income ETF

The highlight of the conversation is Calamos’ Auto-Callable Income ETF (CAIE), the first of its kind to bring structured note mechanics into the ETF wrapper.

Auto-Callables, a $100 billion market in the structured product space, tie bond-like coupons to equity market performance. Calamos collaborated with JPMorgan and MerQube to bring the concept into ETF form, offering high, stable, and mostly tax-deferred income without the paperwork or liquidity constraints of traditional notes.

“An adviser told me, ‘This is the easy button,’” Kaufman said. “No more stacking paper notes, no more tax headaches, just scalable, repeatable income in an ETF.”

Why the ETF Rule Changed Everything

None of this would’ve been possible without the SEC’s 2019 ETF Rule and the follow-on Derivatives Rule. Before that, launching ETFs with custom exposures using swaps or OTC derivatives required lengthy exemptive relief. Today, innovators like Calamos can bring institutional-grade strategies to retail investors faster and with fewer barriers.

“The ETF rule leveled the playing field,” said Kaufman. “It allowed firms like ours to bring new categories, not just new funds, to market.”

Portfolio Fit and Risk

So how should investors think about products like CAIE?

• Use Case: Typically replaces a slice of equities or high-yield bonds
• Yield Potential: Target coupons near 14 percent, mostly tax-deferred
• Risk Profile: Investors trade deep downside risk (for example, a 40 percent drop in equities) for steady income. Barriers are in place to protect capital in most market conditions
• Liquidity: Fully transparent, daily priced, and backed by S&P 500 index swaps with strong implied liquidity

What’s Next for ETFs?

Calamos is just getting started. With the structured note and annuity markets now in their sights, Kaufman sees tremendous room for growth in derivatives-powered ETF solutions.

“Frankfurt has 1.4 million structured products listed,” Kaufman noted. “We’re just getting started in the U.S.”

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.

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.